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Import Competition and the Probability of Job Displacement

In: Making Sense of Anti-trade Sentiment

Author

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  • Roger White

Abstract

We build on the analysis presented thus far by shifting our focus from the potential influence of international trade on industry-level employment and wages to whether trade correlates with a heightened probability that a worker experiences job displacement. Using worker-level data, we first estimate displacement probabilities for 32 worker types, defined by level of education, gender, race, and union affiliation. We then perform a series of counterfactual exercises to examine the effects of import competition on these displacement probabilities. To discern the relationship between trade and job displacement, we match individual worker observations from the 1984–2000 Displaced Worker Surveys (DWS) to industry-level data and estimate a series of binomial logit specifications.

Suggested Citation

  • Roger White, 2014. "Import Competition and the Probability of Job Displacement," Palgrave Macmillan Books, in: Making Sense of Anti-trade Sentiment, chapter 0, pages 109-135, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37325-0_7
    DOI: 10.1057/9781137373250_7
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