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Impacts of increased Chinese imports on Japan’s labor market
Institution:1. Development Studies Center, Institute of Developing Economies, Japan;2. Faculty of International Social Sciences, Gakushuin University, 1-5-1 Mejiro, Toshima-ku, Tokyo 171-8588, Japan;3. Graduate School of Asia-Pacific Studies, Waseda University, Japan;4. Research Institute of Economy, Trade and Industry, Japan;1. Faculty of International Social Sciences, Gakushuin University, Tokyo, Japan;2. Okayama University, Japan;3. Aomori Chuo Gakuin University, Japan;1. Faculty of Business Administration, Toyo University, 5–28-20, Hakusan, Bunkyo-ku, Tokyo 112-8606, Japan;2. Department of Economics, Yokohama National University, 79–3, Tokiwadai, Hodogaya-ku, Yokohama 240-8501, Japan;3. School of Business and Law Edith Cowan University Australia, 270 Joondalup Drive, Joondalup, WA 6027, Australia;1. Hitotsubashi University, Japan;2. Aoyama Gakuin University, Japan;3. Gakushuin University, Japan;4. University of Niigata Prefecture, Japan;1. Faculty of Commerce, Chuo University, 742-1, Higashi-Nakano, Hachioji, Tokyo, 192-0393, Japan;2. Research Institute of Economy, Trade and Industry, Japan;3. Tokyo Institute of Technology, Japan;1. School of Business, Aoyama Gakuin University, Japan;2. Graduate School of Economics and Management, Tohoku University, Japan;3. Faculty of Science and Engineering, Hosei University, Japan
Abstract:Using the Japanese firm/establishment-level census data, we investigate the impact of the Chinese import penetration on employment in Japan. We found negative impacts of the Chinese import penetration on total employment, especially in industries producing competing products to Chinese imports, and a positive impact of the import penetration in the industries from which firms purchase their inputs (upstream import penetration). The negative impacts are mainly driven by firms’ exit from the market while positive impacts are enjoyed by surviving firms. We did not find any significant impacts of the penetration in the industries to which firms sell their products (downstream penetration).
Keywords:China  Japan  Import penetration  Labor market
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