Manufacturing growth and local employment multipliers in China |
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Authors: | Ting Wang Areendam Chanda |
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Institution: | Department of Economics, Louisiana State University, Baton Rouge, LA 70803, USA |
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Abstract: | We study the impact of employment growth in manufacturing on job creation in the non-tradable sector for prefecture-level cities in China. Using the 2000 and 2010 Censuses of Population, we apply the shift-share approach to isolate the exogenous change of employment growth in manufacturing. For every hundred new manufacturing jobs, we find that 34 additional jobs are created in the non-tradable sector. We also show that the effect is heterogeneous along a number of dimensions. More specifically, one new job in high-technology manufacturing creates more jobs in the non-tradable sector while low-technology manufacturing employment growth has no significant multiplier effect. Among the non-tradable industries, the multiplier is the largest for wholesale, retail, and catering. Finally, the effect is also geographically heterogeneous, with the multiplier being greater for inland regions. |
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Keywords: | Structural transformation Local labor markets Regional spillovers China O14 O18 R11 N95 |
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