TRADE LIBERALIZATION AND THE GREAT LABOR REALLOCATION

• 成果类型: Article
• 署名作者: Zi, Yuan
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12751
• 发表日期: 2025
• 页码: 933-963
• 关键词: MIGRATION; GLOBALIZATION; PERSPECTIVES; adjustment; PROTECTION; geography; mobility; impacts; shocks

摘要

I examine how migration frictions shape the effects of trade policy by analyzing the impact of tariff reductions on labor allocation in China and the role of hukou-based migration frictions. Trade liberalization induces significant labor reallocation, greater in regions with lower hukou frictions. Quantitatively, trade liberalization increases China's welfare by 0.72%. Abolishing the hukou system directly improves welfare by 1.75% but reduces gains from tariff reductions by 18% and amplifies negative distributional effects. In the process, I develop a novel measure of hukou-related migration frictions.