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Trade Sensitivity, Technology, and Labor Displacement

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  • John T. Addison
  • Douglas A. Fox
  • Christopher J. Ruhm

Abstract

We study the relationship between international trade, technology, and the probability and consequences of job displacement, using data on displaced workers as well as those at risk of job dislocation for 1984-86 and 1989-91. Workers employed in industries with elevated import shares and high levels of investment in computers appear to have increased rates of job loss, with the results for export penetration varying on the time period examined. These risks do not, however, translate into unfavorable postdisplacement labor market outcomes. Indeed, there is some evidence that individuals displaced from export-oriented sectors have fewer adjustment problems than the generality of dislocated workers, while those terminated from sectors investing heavily in computer technologies are more likely to retain health insurance coverage. That being said, our findings are frequently sensitive to the choice of specifications and time periods.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5621.

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Date of creation: Jun 1996
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Handle: RePEc:nbr:nberwo:5621

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  1. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  2. Borjas, George J & Ramey, Valerie A, 1994. "Time-Series Evidence on the," American Economic Review, American Economic Association, vol. 84(2), pages 10-16, May.
  3. Paul Krugman, 1995. "Technology, Trade, and Factor Prices," NBER Working Papers 5355, National Bureau of Economic Research, Inc.
  4. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
  5. Lawrence F. Katz & Gary W. Loveman & David G. Blanchflower, 1993. "A Comparison of Changes in the Structure of Wages," NBER Working Papers 4297, National Bureau of Economic Research, Inc.
  6. Louis S. Jacobson & Robert J. LaLonde & Daniel Sullivan, 1992. "Earnings Losses of Displaced Workers," Upjohn Working Papers and Journal Articles 92-11, W.E. Upjohn Institute for Employment Research.
  7. Revenga, Ana L, 1992. "Exporting Jobs? The Impact of Import Competition on Employment and Wages in U.S. Manufacturing," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 255-84, February.
  8. Topel, Robert, 1993. "What Have We Learned from Empirical Studies of Unemployment and Turnover?," American Economic Review, American Economic Association, vol. 83(2), pages 110-15, May.
  9. David Blanchflower & L Katz & G Loveman, 1993. "A Comparison of Changes in the Structure of Wages in Four OECD Countries," CEP Discussion Papers dp0144, Centre for Economic Performance, LSE.
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  11. Edward E. Leamer, 1994. "Trade, Wages and Revolving Door Ideas," NBER Working Papers 4716, National Bureau of Economic Research, Inc.
  12. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
  13. Colin Lawrence & Robert Z. Lawrence, 1985. "Manufacturing Wage Dispersion: An End Game Interpretation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(1), pages 47-116.
  14. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
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  16. J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.
  17. Douglas L. Kruse, 1988. "International trade and the labor market experience of displaced workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(3), pages 402-417, April.
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Cited by:
  1. repec:iab:iabmit:v:33:i:4:p:594-608 is not listed on IDEAS
  2. Daniel Rodriguez & Madeline Zavodny, 2000. "Explaining changes in the age distribution of displaced workers," Working Paper 2000-1, Federal Reserve Bank of Atlanta.
  3. Alicia H. Munnell & Steven Sass & Mauricio Soto & Natalia Zhivan, 2006. "Has the Displacement of Older Workers Increased?," Working Papers, Center for Retirement Research at Boston College wp2006-17, Center for Retirement Research, revised Sep 2006.
  4. Daniel Rodriguez & Madeline Zavodny, 2000. "Are displaced workers now finished at age forty?," Economic Review, Federal Reserve Bank of Atlanta, issue Q2, pages 33-48.
  5. Madeline Zavodny, 2000. "Technology and job retention among young adults, 1980-98," Working Paper 2000-7, Federal Reserve Bank of Atlanta.

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