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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. Copyright Blackwell Publishing Ltd 2004..

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
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    Cited by:

    1. Guillaume Daudin & Jean-Luc Gaffard & Francesco Saraceno, 2007. "Ordre et désordre dans l'échange international. Une revue de littérature," Revue de l'OFCE, Presses de Sciences-Po, pages 143-174.
    2. Falvey, Rod & Greenaway, David & Silva, Joana, 2010. "Trade liberalisation and human capital adjustment," Journal of International Economics, Elsevier, pages 230-239.
    3. Lori G. Kletzer, 2005. "Globalization and job loss, from manufacturing to services," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 38-46.
    4. Barrett, Alan & Kearney, Ide & O'Brien, Martin, 2008. "Quarterly Economic Commentary, Spring 2008," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20081.
    5. 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.
    6. Wolfgang Lechthaler & Mariya Mileva, 2014. "Smoothing the adjustment to trade liberalization," WWWforEurope Working Papers series 61, WWWforEurope.
    7. L. Alan Winters, 2014. "International trade regulation and job creation," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-75.
    8. 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.
    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, pages 245-281.
    10. 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, pages 156-178.
    11. Zareh Asatryan & Sebastian Braun & Wolfgang Lechthaler & Mariya Mileva & Catia Montagna, 2014. "Compensating the losers of free trade," WWWforEurope Working Papers series 63, WWWforEurope.
    12. repec:spo:wpecon:info:hdl:2441/3201 is not listed on IDEAS
    13. 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.
    14. Falvey, Rod & Greenaway, David & Silva, Joana, 2010. "Trade liberalisation and human capital adjustment," Journal of International Economics, Elsevier, pages 230-239.
    15. 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.
    16. 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 Group Munich, vol. 0, pages 71-104, February.
    17. repec:smu:ecowpa:1405 is not listed on IDEAS
    18. Guillaume Daudin & Jean-Luc Gaffard & Francesco Saraceno, 2007. "Ordre et désordre dans l'échange international. Une revue de littérature," Revue de l'OFCE, Presses de Sciences-Po, pages 143-174.
    19. World Bank, 2005. "Colombia : Country Economic Memorandum, The Foundations for Competitiveness," World Bank Other Operational Studies 8807, The World Bank.
    20. 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.
    21. 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.

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