US workers outside the manufacturing sector had relative earnings increases following the country’s liberalisation of trade with China, according to research from the Federal Reserve Board. 

The research, published this month, looks at the period of liberalisation that began in 2000 and studies the effect until 2007. It says the resulting gains accumulated over time due to increased competition from China in input markets. 

The authors – Justin Pierce, Peter Schott and Cristina Tello-Trillo – say