The extensive margin of restructuring: Adoption of new work in a global economy

This paper examines the importance of trade-induced restructuring at the extensive margin, using a novel measure of new work---jobs employing new knowledge, skills, and technologies---based on the emergence of new job titles over time. I show that import competition significantly increases the adoption of new work in US manufacturing industries. The restructuring process, facilitated by offshoring, importantly explains compositional shifts toward non-production activities. These adjustments, amplified through supply chain linkages at the local labor market level, generate positive spillovers to local service industries. Finally, I show that new work is a key mechanism through which trade shocks can increase local wage inequality.