Working Paper

The Employment Consequences of Anti-Dumping Tariffs: Lessons from Brazil

Abstract: Can anti-dumping tariffs increase employment? We compile data on all antidumping (AD) investigations in Brazil matching it to firm-level administrative employment information. Using difference-in-differences, we find that an AD tariff decreases imports and increases employment in the protected sector. Moreover, downstream firms decrease employment, while upstream ones are not affected. To quantify the aggregate effect of these tariffs, we build a model with international trade, input-output linkages, and labor force participation. We show that the Brazilian AD policy increased employment by 0.06%, but decreased welfare by 2.4%. Using tariffs, the government can increase employment by as much as 2.8%.

Keywords: Employment; Tariffs; Anti-Dumping; International Trade;

JEL Classification: F13; F16;

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Working Paper Series

Publication Date: 2022-10-05

Number: WP 2022-46