Trade Sensitive Manufacturing Employment: Some New Insights

Abstract

Persistent trade deficits in the United States since 1971, and growing foreign competition have revived debate about the net effects of trade on the domestic economy. Focusing on the employment consequences of trade, this study examines the demographic and industrial characteristics of trade sensitive manufacturing industries in the United States. The findings reveal two significant trends. Firstly, there has been a decline in the importance of high-tech manufacturing as a source of trade related employment opportunities since 1975. Secondly, while trade enhanced industries still employ relatively fewer women and minorities than industries adversely affected by trade, the gap has narrowed, especially for women. Since 1975, the proportion of all women employed in adversely affected industries actually declined; for every 1 percent decline in female employment in an adversely affected manufacturing industry there was a corresponding 0.6 percent gain in employment in a trade-enhanced manufacturing industry.