This paper investigates the impact of an export demand shock triggered by the 2014 Russian import ban on labor earnings in Poland. We implement an event-study using traditional and doubly-robust difference-in-differences estimators, supplemented by a variance
decomposition. Our findings indicate that the shock has caused substantial consequences for regional inequality. Specifically, we document a persistent decline in average relative earnings between the exposed group of counties and the rest of the country. The analysis of between-group variance shows that the import ban has reduced the earnings premium, shifting the exposed counties from relatively higher-earnings positions toward the national average.
