Abstract
A new methodology is developed to determine the extent to which imports have been responsible for labor displacements and wage movements in specific, allegedly trade — impacted sectors. The procedure involves the estimation of reduced—form wage and employment equations by sector. The proposed methodology is applied to nine manufacturing sectors in the United States. Counterfactual simulations are performed under the hypothetical assumption of no intensification or abatement of import competition from 1967 — 1979. The simulations show that imports have been responsible for the loss of a large number of jobs in only one industry, and for a significant loss in wages in two industries, among the nine studied.
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