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Does Trade Adjustment Assistance Make a Difference?

Author

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  • Kara M. Reynolds
  • John S. Palatucci

Abstract

Background: The U.S. Trade Adjustment Assistance (TAA) program provides workers who have lost their jobs due to increased trade with income support and training, job search, and relocation benefits. This paper uses the most recent data collected by the Department of Labor on TAA beneficiaries to provide one of the first evaluations of the effectiveness of the Trade Adjustment Assistance program. Using propensity score matching techniques, we find that the TAA program is of dubious value in terms of helping displaced workers find new, well-paying employment opportunities.

Suggested Citation

  • Kara M. Reynolds & John S. Palatucci, 2008. "Does Trade Adjustment Assistance Make a Difference?," Working Papers 2008-12, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:1208
    DOI: 10.17606/542m-xh06
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    Cited by:

    1. Christopher Laincz & Xenia Matschke & Yoto V. Yotov, 2021. "Policy and politics: Trade adjustment assistance in the crossfire," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 760-792, May.
    2. José Signoret & Alen Mulabdic & Ludmila Cieszkowsky, 2020. "Trade and Poverty in EU Regions," World Bank Publications - Reports 33454, The World Bank Group.
    3. Justin Barnette & Jooyoun Park, 2017. "Increases in Local Unemployment and the Delivery of Trade Adjustment Assistance Services," Economic Development Quarterly, , vol. 31(1), pages 3-24, February.
    4. James N. Giordano, 2017. "Job Training Subsidies, Reemployment and Earnings in the Trade Adjustment Assistance Program," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 23(3), pages 283-293, August.
    5. Park, Jooyoun & Reynolds, C.L. & Rohlin, Shawn M., 2014. "The impact of import-related displacement on local business activity," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 94-109.
    6. Justin Barnette & Jooyoun Park, 2021. "Skill Overshooting in Job Training With the Trade Adjustment Assistance Program," Economic Development Quarterly, , vol. 35(2), pages 141-156, May.

    More about this item

    Keywords

    Trade Adjustment Assistance; displaced workers;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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