NADS Held 11th "Theory and Policy" Seminar

Topic: How Do Households Adjust to Trade Liberalization? Evidence from China’s WTO Accession

Speaker: DAI Mi, Associate Professor of the School of Economics and Business Management of Beijing Normal University

Time: 15:00-17:00, June 1st, 2018, Friday

Venue: 916 Meeting Room, Chongde Building West Wing, Renmin University of China

Abstract:

We investigate the impacts of trade liberalization on household behaviors and outcomes in urban China, exploiting regional variation in the exposure to tariff cuts resulting from WTO entry. Regions that initially specialized in industries facing larger tariff cuts experienced relative declines in wages. Households responded to this income shock in several ways. First, household members worked more, especially in the non-tradable sector. Second, more young adults co-resided with their parents, and thus household size increased. Third, households saved less. These behaviors significantly buffered the negative wage shock induced by trade liberalization.

Speaker's Introduction:

DAI Mi, Associate Professor of the School of Economics and Business Management of Beijing Normal University, Doctor of Economics of Peking University. Visiting scholar of Columbia University and Fed Bank of New York. The main research direction is International Trade and Development Economics. The research results were published in international journals such as Journal of International Economics, Journal of Development Economics, The World Economy, and other Chinese journals such as "Management World", "Economics (Quarterly)" and "World Economy". The research results won the 18th "An Zijie International Trade Research Excellent Paper Award".

(Division of Teachers and Post-Doctor Affairs, NADS)