The “China Shock”—triggered by the country’s entry into the World Trade Organization—devastated America’s heartland, causing a sudden exodus of manufacturing jobs and disrupting the communities that depended on them. Promoters of globalization promised “better” jobs would take their place. Nearly 25 years later, has that happened?
David Autor, professor of economics at MIT and co-author of the famous “China Shock” paper, joins Oren to talk about the effects of free trade on America’s working class. They also examine Autor’s latest paper, which highlights that the new jobs in the hardest-hit communities often don’t provide the pay or stability that the jobs outsourced by globalization did—and, even worse, that many former workers lack access to these jobs altogether. Plus, they explore the rise of automation in manufacturing and the implications of AI for American workers.
Further reading:
- "Places versus People: The Ins and Outs of Labor Market Adjustment to Globalization" by David Autor, David Dorn, et al.
- "The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade" by David Autor, David Dorn, and Gordon Hanson
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