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Trade Sensitivity, Technology, and Labor Displacement

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  • John T. Addison
  • Douglas A. Fox
  • Christopher J. Ruhm

Abstract

We study the relationship between international trade, technology, and the probability and consequences of job displacement, using data on displaced workers as well as those at risk of job dislocation for 1984-86 and 1989-91. Workers employed in industries with elevated import shares and high levels of investment in computers appear to have increased rates of job loss, with the results for export penetration varying on the time period examined. These risks do not, however, translate into unfavorable postdisplacement labor market outcomes. Indeed, there is some evidence that individuals displaced from export-oriented sectors have fewer adjustment problems than the generality of dislocated workers, while those terminated from sectors investing heavily in computer technologies are more likely to retain health insurance coverage. That being said, our findings are frequently sensitive to the choice of specifications and time periods.

Suggested Citation

  • John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 1996. "Trade Sensitivity, Technology, and Labor Displacement," NBER Working Papers 5621, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5621
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    Cited by:

    1. Beckmann, Michael, 2000. "Unternehmenspolitik, Managerkontrolle und Personalabbau in Deutschland : theoretische Ansätze und empirische Analyse mit Daten des IAB-Betriebspanels (Corporate policy, manager control and staff reduc," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 594-608.
    2. Daniel Rodriguez & Madeline Zavodny, 2000. "Explaining changes in the age distribution of displaced workers," FRB Atlanta Working Paper 2000-1, Federal Reserve Bank of Atlanta.
    3. Madeline Zavodny, 2000. "Technology and job retention among young adults, 1980-98," FRB Atlanta Working Paper 2000-7, Federal Reserve Bank of Atlanta.
    4. John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 2000. "Technology, Trade Sensitivity, and Labor Displacement," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 682-699, January.
    5. Daniel Rodriguez & Madeline Zavodny, 2000. "Are displaced workers now finished at age forty?," Economic Review, Federal Reserve Bank of Atlanta, vol. 85(Q2), pages 33-48.
    6. Alicia H. Munnell & Steven Sass & Mauricio Soto & Natalia Zhivan, 2006. "Has the Displacement of Older Workers Increased?," Working Papers, Center for Retirement Research at Boston College wp2006-17, Center for Retirement Research, revised Sep 2006.
    7. Beckmann, Michael, 2000. "Unternehmenspolitik, Managerkontrolle und Personalabbau in Deutschland : theoretische Ansätze und empirische Analyse mit Daten des IAB-Betriebspanels (Corporate policy, manager control and staff reduc," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 594-608.

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    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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