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Trade‐related Job Loss and Wage Insurance: a Synthetic Review

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  • Lori G. Kletzer

Abstract

The paper seeks to promote further integration of empirical and theoretical discussions of trade and worker adjustment. From the author's recent studies of the costs of job loss, she develops 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. The author discusses the basic ideas of wage insurance and summarizes the few data known about how a program might work if implemented in the United States. A final section provides a list of issues for a model of trade that will be consistent with the empirical stylized facts, and sets out questions for future research.

Suggested Citation

  • Lori G. Kletzer, 2004. "Trade‐related Job Loss and Wage Insurance: a Synthetic Review," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 724-748, November.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:5:p:724-748
    DOI: 10.1111/j.1467-9396.2004.00479.x
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    References listed on IDEAS

    as
    1. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Globalization and the Perceptions of American Workers," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 109, October.
    2. Daniel Trefler, 2004. "The Long and Short of the Canada-U. S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September.
    3. Lori G. Kletzer, 2001. "Job Loss from Imports: Measuring the Costs," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 110, October.
    4. Lori G. Kletzer & Robert E. Litan, 2001. "A Prescription to Relieve Worker Anxiety," Policy Briefs PB01-02, Peterson Institute for International Economics.
    5. Bloom, H. & Fink, B. & Lui-Gurr, S. & Bancroft, W. & Tattrie, D., 1997. "Implementing the Earnings Supplement Project: A Test of a Re-employment Incentive," Papers r-98-1a, Gouvernement du Canada - Human Resources Development.
    6. J. Bradford Jensen & Andrew B Bernard, 2002. "The Deaths of Manufacturing Plants," Working Papers 02-15, Center for Economic Studies, U.S. Census Bureau.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Lake, James & Millimet, Daniel L., 2016. "An empirical analysis of trade-related redistribution and the political viability of free trade," Journal of International Economics, Elsevier, vol. 99(C), pages 156-178.
    2. Sebastian Benz & Louise Johannesson, 2019. "Job characteristics, job transitions and services trade: Evidence from the EU labour force survey," OECD Trade Policy Papers 225, OECD Publishing.
    3. World Bank, 2005. "Colombia : Country Economic Memorandum, The Foundations for Competitiveness," World Bank Publications - Reports 8807, The World Bank Group.
    4. Ramya Vijaya, 2007. "Trade, Job Losses and Gender: A Policy Perspective," Forum for Social Economics, Taylor & Francis Journals, vol. 36(2), pages 73-85, January.
    5. Donald O. Parsons, 2023. "How should job displacement wage losses be insured?," World of Labour, LISER, pages 446-446, July.
    6. Lars Calmfors & Giancarlo Corsetti & Michael P. Devereux & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2008. "Chapter 3: The effect of globalisation on Western European jobs: curse or blessing?," EEAG Report on the European Economy, CESifo, vol. 0, pages 71-104, February.
    7. Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs.
    8. Wolfgang Lechthaler & Mariya Mileva, 2014. "Smoothing the Adjustment to Trade Liberalisation. WWWforEurope Working Paper No. 61," WIFO Studies, WIFO, number 47248.
    9. M. Sirgy & Dong-Jin Lee & Chad Miller & James Littlefield & Eda Atay, 2007. "The Impact of Imports and Exports on a Country’s Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 83(2), pages 245-281, September.
    10. Barry, Frank & Walsh, Frank, 2008. "Gains and losses from sectoral relocation: A review of theory and empirics," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 4-16, March.
    11. Guillaume Daudin & Jean-Luc Gaffard & Francesco Saraceno, 2007. "Ordre et désordre dans l'échange international," Post-Print hal-03459556, HAL.
    12. Mattia Di Ubaldo & L. Alan Winters, 2020. "International trade regulation and job creation," World of Labour, LISER, pages 1-75, February.
    13. Zareh Asatryan & Sebastian Braun & Wolfgang Lechthaler & Mariya Mileva & Catia Montagna, 2014. "Compensating the Losers of Free Trade. WWWforEurope Working Paper No. 63," WIFO Studies, WIFO, number 47260.
    14. repec:spo:wpecon:info:hdl:2441/3201 is not listed on IDEAS
    15. Lori G. Kletzer, 2005. "Globalization and job loss, from manufacturing to services," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 29(Q II), pages 38-46.
    16. repec:smu:ecowpa:1405 is not listed on IDEAS
    17. Geishecker, Ingo, 2008. "The impact of international outsourcing on individual employment security: A micro-level analysis," Labour Economics, Elsevier, vol. 15(3), pages 291-314, June.
    18. repec:spo:wpmain:info:hdl:2441/3201 is not listed on IDEAS
    19. 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.
    20. Tjader, Youxu Cai & Shang, Jennifer S. & Vargas, Luis G., 2010. "Offshore outsourcing decision making: A policy-maker's perspective," European Journal of Operational Research, Elsevier, vol. 207(1), pages 434-444, November.
    21. Falvey, Rod & Greenaway, David & Silva, Joana, 2010. "Trade liberalisation and human capital adjustment," Journal of International Economics, Elsevier, vol. 81(2), pages 230-239, July.
    22. Calmfors, Lars & Dimdins, Girts & Sendén, Marie Gustafsson & Montgomery, Henry & Stavlöt, Ulrika, 2013. "Why do people dislike low-wage trade competition with posted workers in the service sector?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 82-93.
    23. Barrett, Alan & Kearney, Ide & O'Brien, Martin, 2008. "Quarterly Economic Commentary, Spring 2008," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20081.
    24. Wolfgang Lechthaler & Mariya Mileva, 2021. "Smoothing the adjustment to trade liberalization," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 903-946, November.
    25. Benjamin G. Hyman, 2022. "Can Displaced Labor Be Retrained? Evidence from Quasi-Random Assignment to Trade Adjustment Assistance," Working Papers 22-05, Center for Economic Studies, U.S. Census Bureau.

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