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Trade-related Job Loss and Wage Insurance: A Synthetic Review

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  • Kletzer, Lori
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    Abstract

    This paper seeks to promote further integration of empirical and theoretical discussions of trade and worker adjustment. From my recent studies of the costs of job loss, I develop a set of stylized facts of trade-related job loss, with a focus on worker characteristics and labor market consequences. These stylized facts are relevant to any (credible) model of trade liberalization and adjustment costs. I then discuss the basic ideas of wage insurance and summarize the little that is known about how a program might work if implemented in the U.S. A final section provides a list of issues for a model of trade that will be consistent with the empirical stylized facts, sets out questions for future research and concludes.

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    File URL: http://www.escholarship.org/uc/item/27w182ht.pdf;origin=repeccitec
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    Bibliographic Info

    Paper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt27w182ht.

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    Date of creation: 01 Jun 2003
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    Handle: RePEc:cdl:ucscec:qt27w182ht

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    1. Jagdish N. Bhagwati, 1982. "Introduction to "Import Competition and Response"," NBER Chapters, in: Import Competition and Response, pages 1-8 National Bureau of Economic Research, Inc.
    2. Richard Brecher & Eshan Choudhri, 1991. "Pareto Gains from Trade, Reconsidered: Compensating for Job Lost," Carleton Economic Papers 91-16, Carleton University, Department of Economics, revised May 1994.
    3. Lori G. Kletzer & Robert E. Litan, 2001. "A Prescription to Relieve Worker Anxiety," Policy Briefs PB01-02, Peterson Institute for International Economics.
    4. Paul T. Decker & Christopher J. O'Leary, . "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Upjohn Working Papers and Journal Articles ptdcjo1995, W.E. Upjohn Institute for Employment Research.
    5. Brander, James A. & Spencer, Barbara J., 1994. "Trade adjustment assistance : Welfare and incentive effects of payments to displaced workers," Journal of International Economics, Elsevier, vol. 36(3-4), pages 239-261, May.
    6. Baily, Martin Neil, 1978. "Some aspects of optimal unemployment insurance," Journal of Public Economics, Elsevier, vol. 10(3), pages 379-402, December.
    7. Jagdish N. Bhagwati, 1982. "Import Competition and Response," NBER Books, National Bureau of Economic Research, Inc, number bhag82-1.
    8. Dixit, Avinash & Norman, Victor, 1986. "Gains from trade without lump-sum compensation," Journal of International Economics, Elsevier, vol. 21(1-2), pages 111-122, August.
    9. Feenstra, Robert C. & Lewis, Tracy R., 1994. "Trade adjustment assistance and Pareto gains from trade," Journal of International Economics, Elsevier, vol. 36(3-4), pages 201-222, May.
    10. Lori G. Kletzer, 2001. "Job Loss from Imports: Measuring the Costs," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 110.
    11. Lori G. Kletzer, 2002. "Imports, Exports, and Jobs: What Does Trade Mean for Employment and Job Loss?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number iej.
    12. Paul Decker & Walter Corson, 1995. "International trade and worker displacement: Evaluation of the Trade Adjustment Assistance Program," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 758-774, July.
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    Cited by:
    1. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 19(4), pages 55-121.
    2. Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc.

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