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Does Trade Adjustment Assistance Make a Difference?

Author

Listed:
  • Kara M. Reynolds
  • John S. Palatucci

Abstract

Background: The U.S. Trade Adjustment Assistance (TAA) program provides workers who have lost their jobs due to increased trade with income support and training, job search, and relocation benefits. This paper uses the most recent data collected by the Department of Labor on TAA beneficiaries to provide one of the first evaluations of the effectiveness of the Trade Adjustment Assistance program. Using propensity score matching techniques, we find that the TAA program is of dubious value in terms of helping displaced workers find new, well-paying employment opportunities.

Suggested Citation

  • Kara M. Reynolds & John S. Palatucci, 2008. "Does Trade Adjustment Assistance Make a Difference?," Working Papers 2008-12, American University, Department of Economics.
  • Handle: RePEc:amu:wpaper:1208
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    File URL: http://w.american.edu/cas/economics/repec/amu/workingpapers/2008-12.pdf
    File Function: First version, 2008
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    Cited by:

    1. repec:kap:iaecre:v:23:y:2017:i:3:d:10.1007_s11294-017-9647-7 is not listed on IDEAS
    2. Christopher Laincz & Xenia Matschke & Yoto V. Yotov, 2016. "Policy and Politics: Trade Adjustment Assistance in the Crossfire," CESifo Working Paper Series 5697, CESifo Group Munich.
    3. 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.

    More about this item

    Keywords

    Trade Adjustment Assistance; displaced workers;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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