@article{558d1d4381d3453cb3c76eb3829d6491,
title = "Trade liberalisation and labour shares in China",
abstract = "We estimate the extent to which firms responded to tariff reductions associated with China's WTO entry by altering labour's share of value. Firm-level regressions indicate that firms in industries subject to tariff cuts raised labour's share relative to economy-wide trends, both through input choices and rent sharing. Our estimates suggest that, on average, an industry that experienced no reductions in output or input tariffs would have a 15.7% lower labour share of value in 2007 than it actually did, assuming the same economy-wide trends. There is significant variation across firms: the impact attenuates with geographic remoteness and union presence and strengthens with foreign ownership.",
keywords = "China, labour shares, trade liberalisation",
author = "Fariha Kamal and Lovely, {Mary E.} and Devashish Mitra",
note = "Funding Information: The authors gratefully acknowledge comments from seminar participants at the Canadian Economic Association Meetings, North American Meetings of the Chinese Economist Society (CES), ASSA meetings, Mid-West International Economics Meetings, Empirical Investigations in International Trade conference (University of Virginia), the University of Toronto, the Center for Economic Studies at the U.S. Census Bureau, Shanghai Jiao Tong University, George Washington University and U.S. International Trade Commission. We especially acknowledge comments by an anonymous referee and associate editor Zhihong Yu, as well as those by Loren Brandt, William McGuire, James Spletzer, Dennis Yang and Xiaodong Zhu. We thank Xuepeng Liu for data on Chinese tariff rates, Siping Luo for firm remoteness measures, Yang Liang and Hong Ma for minimum wage data and Hoang Pham for research assistance. Publisher Copyright: {\textcopyright} 2019 John Wiley & Sons Ltd",
year = "2019",
month = dec,
day = "1",
doi = "10.1111/twec.12857",
language = "English (US)",
volume = "42",
pages = "3588--3618",
journal = "World Economy",
issn = "0378-5920",
publisher = "Wiley-Blackwell",
number = "12",
}