Trade liberalisation and labour shares in China

• Published in: World economy Vol. 42; no. 12; pp. 3588 - 3618
• Main Authors: Kamal, Fariha, Lovely, Mary E., Mitra, Devashish
• Format: Journal Article
• Language: English
• Published: Oxford Blackwell Publishing Ltd 01.12.2019
• Subjects: China; Companies; Economic analysis; Free trade; labour shares; Ownership; Tariffs; trade liberalisation; Trade liberalization; Trends; China

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 throu...