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  • Thumbnail for EFFECTS OF INTERNATIONAL TRADE WITH CHINA ON INCOME INEQUALITY IN THE UNITED STATES AND UNEMPLOYMENT RATES OF BLACK AND WHITE LABORERS.
    EFFECTS OF INTERNATIONAL TRADE WITH CHINA ON INCOME INEQUALITY IN THE UNITED STATES AND UNEMPLOYMENT RATES OF BLACK AND WHITE LABORERS. by Shi, Haonan

    Imports from China have grown over 1,156% since 2001. Increasing imports have partially caused the US export and manufacturing job decline. This study uses an ARDL model to deduce if trading with China contributes to the widening US income gap, as well as the discrepancy between Black and white unemployment rates. A second model utilizes commuting zone-based trade and technology exposure data from Autor, Dorn, and Hanson (2015) to evaluate the effects of trade and technology exposure, college education, gender, and CZs African American population on manufacturing job loss. The key addition to previous models is the racial factor. Results indicate that international trade disproportionally impacts unskilled laborers, affirming findings from prior economic studies. This study also found international trade disproportionally contributes to Black unemployment in comparison to white unemployment.