American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Racial and Ethnic Inequality and the China Shock
American Economic Journal: Economic Policy
(pp. 476–508)
Abstract
Minority workers tend to be disproportionately harmed by negative economic shocks. Indeed, we show that Hispanic populations experienced worse employment losses, relative to Whites, due to import competition from China largely due to lower education levels. In contrast, Black–White employment and wage gaps actually narrowed due to relative growth in nonmanufacturing sectors. We show that Black workers, compared to Whites, were less attached to manufacturing by 2000 and were therefore more poised to take advantage of China shock-induced reallocation to services. The lasting negative impacts of the China shock on exposed communities were primarily driven by White workers.Citation
Kahn, Lisa B., Lindsay Oldenski, and Geunyong Park. 2026. "Racial and Ethnic Inequality and the China Shock." American Economic Journal: Economic Policy 18 (3): 476–508. DOI: 10.1257/pol.20240478Additional Materials
JEL Classification
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- F16 Trade and Labor Market Interactions
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics