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Job loss: bridging the research and policy discussion

  • Lisa M. Lynch

In this paper I discuss a structural problem facing the United States with respect to our policy responses in the context of trade and technological change and their impact on workers. Both trade and technological change have put enormous pressure on the U.S. economy to raise the skill level of the workforce. But the supply of skilled workers in the U.S. is just not keeping pace with the changes in demand due to technology and trade. Fixing this crisis requires us to understand both the skill quality of workers entering into the labor market and the nature of the stock of skills of workers already in the job market. This paper summarizes our knowledge on where workers get skills training and the returns to this training – both private and public. It then discusses how the academic research has informed the policy process and provides some suggestions on how academic economists can get involved in the policy debate to influence the direction of policy.

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Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

Volume (Year): (2005)
Issue (Month): Q II ()
Pages: 29-37

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Handle: RePEc:fip:fedhep:y:2005:i:qii:p:29-37:n:v.29no.2
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  1. James Heckman & Jeffrey Smith & Christopher Taber, 1998. "Accounting For Dropouts In Evaluations Of Social Programs," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 1-14, February.
  2. Louis Jacobson & Robert J. LaLonde & Daniel Sullivan, 2005. "The impact of community college retraining on older displaced workers: Should we teach old dogs new tricks?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(3), pages 398-415, April.
  3. Nordås, Hildegunn Kyvik, 2004. "The global textile and clothing industry post the agreement on textiles and clothing," WTO Discussion Papers 5, World Trade Organization (WTO), Economic Research and Statistics Division.
  4. Christopher J OLeary Paul T Decker Stephen A Wandner, 2003. "Cost-Effectiveness of Targeted Reemployment Bonuses," Mathematica Policy Research Reports bfb3f05c02874e698d2140777, Mathematica Policy Research.
  5. Louis Jacobson & Robert J. Lalonde & Daniel Sullivan, 2005. "The Impact of Community College Retraining on Older Displaced Workers: Should We Teach Old Dogs New Tricks?," ILR Review, Cornell University, ILR School, vol. 58(3), pages 398-415, April.
  6. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
  7. James J. Heckman & Jeffrey A. Smith & Christopher Taber, 1996. "What Do Bureaucrats Do? The Effects of Performance Standards and Bureaucratic Preferences on Acceptance into the JTPA Program," NBER Working Papers 5535, National Bureau of Economic Research, Inc.
  8. Alan Blinder & Alan Krueger, 2004. "What Does the Public Know about Economic Policy, and How Does It Know It?," Working Papers 875, Princeton University, Department of Economics, Industrial Relations Section..
  9. Heckman, James J & Smith, Jeffrey A., 2003. "The determinants of participation in a social program: Evidence from a prototypical job training program," Working Paper Series 2003:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. Victor R. Fuchs & Alan B. Krueger & James M. Poterba, 1998. "Economists' Views about Parameters, Values, and Policies: Survey Results in Labor and Public Economics," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1387-1425, September.
  11. 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.
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