Abstract
This study examines the employment effects of international trade in the United States for the first half of the 1980s. Using data from 113 manufacturing sectors at the 3-digit SIC level and regression techniques, the study attempts to explain employment changes in U.S. manufacturing in terms of import penetration ratios, international competitiveness, labor productivity, investments in plant and equipment and the industry concentration ratios. The results suggest that, although rising imports in the manufacturing sector have an overall adverse effect on manufacturing employment, this broad generalization does not hold at a disaggregated level. It concludes that employment levels in high value-added industries appear to have registered significant gains from international trade, while low value-added industries seem to have experienced significant losses.
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