Gordon Hanson on the Loss of U.S. Manufacturing Jobs
When (and where) work disappears
02/24/2012
Peter Dizikes,
MIT News Office
Study: Overseas manufacturing competition hits U.S. regions hard, leaving workers unemployed for years and local economies struggling.
CAMBRIDGE, Mass. — The loss of U.S. manufacturing jobs is a topic that can provoke heated arguments about globalization. But what do the cold, hard numbers reveal? How has the rise in foreign manufacturing competition actually affected the U.S. economy and its workers?
A new study co-authored by MIT economist David Autor shows that the rapid rise in low-wage manufacturing industries overseas has indeed had a significant impact on the United States. The disappearance of U.S. manufacturing jobs frequently leaves former manufacturing workers unemployed for years, if not permanently, while creating a drag on local economies and raising the amount of taxpayer-borne social insurance necessary to keep workers and their families afloat.
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Gordon Hanson is director of the Center on Emerging and Pacific Economies and professor of economics at UC San Diego, where he holds faculty positions in the School of International Relations and Pacific Studies and the Department of Economics. He is a research associate at the National Bureau of Economic Research, a member of the Council on Foreign Relations, and a co-editor of the Review of Economics and Statistics. Prior to joining UC San Diego in 2001, he was on the economics faculty at the University of Michigan (1998-2001) and at the University of Texas (1992-1998).
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