This paper estimates the effects of NAFTA on labor and wages in Mexico using a local labor-markets approach. While NAFTA offered greater export opportunities to Mexican firms that may raise employment, it also opened the door to increased import competition that may dampen employment gains. This...

Trade liberalization affects real-wage inequality through two channels: the distribution of nominal wages across workers and, if the rich and the poor consume different bundles of goods, the distribution of price indices across consumers. I provide a unified framework incorporating both channels...

We analyze how local labor markets in Mexico adjusted in response to an increase in Chinese import competition between 1998 and 2013. We exploit the spatial variation in import exposure arising from initial differences in industry specialization. We found that the adjustment took various forms:...

This paper studies the impact of import competition from China on informality and wages in the Peruvian manufacturing sector in 20012010. Using data from the Peruvian Household Survey, we use a two-step procedure to evaluate the impact of the surge in imports from China on the likelihood of...

This paper studies the impact that import competition from China had on firms performance in the manufacturing sector in Peru in 2005-2015. Using a firm-level dataset that covers the universe of firms in the formal sector, our results reveal that Peruvian firms reacted to increased competition...

We study the impact of import competition on Mexican firm outcomes between 2003 and 2013 by exploiting variation in import penetration across industries. Focusing on the increase in import competition from China that Mexico experienced during this period, we find that the trade shock induced a...

A rise in import competition can put downward pressure on local prices, increasing consumer welfare, but these gains might be unequal across households depending on the basket of goods they consume. Using a consumer price index for Mexico that varies at the product and city level, this paper...

Recent studies on oil market demonstrate endogeneity of oil price by modeling it as a function of consumption and precautionary demands and producers’ supply. However, studies analysing the effect of oil price uncertainty on investment, do not disentangle uncertainties raised by underlying...

We study the impact of Chinese import competition in the 2000s on workers and their households in England and Wales. We document both the direct employment changes of individuals affected by trade exposure, as well as the employment response of individuals whose partner is exposed to trade. We...