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International trade, job training, and labor reallocation

Author

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  • Juan Blyde
  • Jose Claudio Pires
  • Marisol Rodríguez Chatruc

Abstract

A large literature studies the impact of increased import competition on workers' outcomes, however, relatively few studies examine which policies can aid workers displaced by trade. In this article, we evaluate the impact of an industrial job training program in Brazil on workers displaced from manufacturing sectors. We find that industrial training increases the probability of re‐entry into the formal labor market 1 year after displacement by about 17 percentage points and is even more effective for workers displaced from sectors exposed to high import competition. This effect is mainly associated with workers switching sectors and occupations after training.

Suggested Citation

  • Juan Blyde & Jose Claudio Pires & Marisol Rodríguez Chatruc, 2023. "International trade, job training, and labor reallocation," Review of International Economics, Wiley Blackwell, vol. 31(1), pages 204-236, February.
    • Handle: RePEc:bla:reviec:v:31:y:2023:i:1:p:204-236
    DOI: 10.1111/roie.12623
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    References listed on IDEAS

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