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International trade and worker displacement: Evaluation of the Trade Adjustment Assistance Program

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  • Paul Decker
  • Walter Corson
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    Abstract

    The Trade Adjustment Assistance (TAA) program offers unemployment compensation and re-employment adjustment services to workers who lose their jobs due to increased import competition. In 1981 and again in 1988, the program rules were changed to shift the emphasis from compensation to training. This paper examines the pre-layoff characteristics and post-layoff labor market experience of two nationally representative samples of TAA program participants, one of which participated in the program just before the 1988 amendments and the other just after. The authors find that the TAA program was well targeted during the time period studied: it served workers who were permanently displaced from their jobs and who experienced significant earnings losses due to their layoff. They find no evidence, however, that training had a substantial positive impact on earnings of TAA trainees, at least in the first three years after their initial unemployment insurance claim. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 48 (1995)
    Issue (Month): 4 (July)
    Pages: 758-774

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    Handle: RePEc:ilr:articl:v:48:y:1995:i:4:p:758-774

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    Cited by:
    1. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
    2. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc.
    3. Yolanda K. Kodrzycki, 1997. "Training programs for displaced workers: what do they accomplish?," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 39-57.
    4. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex.
    5. Magee, Christopher, 2001. "Administered protection for workers: an analysis of the trade adjustment assistance program," Journal of International Economics, Elsevier, vol. 53(1), pages 105-125, February.
    6. Matusz, Steven J. & Tarr, David, 1999. "Adjusting to trade policy reform," Policy Research Working Paper Series 2142, The World Bank.
    7. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22.
    8. Peter Z. Schochet & Ronald D'Amico & Jillian Berk & Sarah Dolfin & Nathan Wozny, 2012. "Estimated Impacts for Participants in the Trade Adjustment Assistance (TAA) Program Under the 2002 Amendments," Mathematica Policy Research Reports 7736, Mathematica Policy Research.
    9. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Center for International Economics, Working Paper Series qt27w182ht, Center for International Economics, UC Santa Cruz.
    10. Magee, Christopher, 2003. "Endogenous tariffs and trade adjustment assistance," Journal of International Economics, Elsevier, vol. 60(1), pages 203-222, May.
    11. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Department of Economics, Working Paper Series qt27w182ht, Department of Economics, UC Santa Cruz.

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