Worker Adjustment to Trade Shocks: Where You Work or What You Do?

40 Pages Posted: 24 Jan 2017

See all articles by Felipe Benguria

Felipe Benguria

University of Kentucky - Gatton College of Business and Economics

Date Written: January 18, 2017

Abstract

I study the adjustment of Brazilian workers to rising import competition from China. I compare the impact of trade exposure based on workers’ initial industries, geographic regions, and occupations on long-term earnings and employment. Occupation-based exposure to this trade shock leads to the largest adjustment costs in terms of both earnings and employment. I show these adjustment costs are heterogeneous and depend on workers’ educational attainment and tenure at their initial employers. I disentangle the impact of trade on earnings at workers’ initial employers or industries versus the impact on earnings outside of these.

Keywords: International Trade, Labor Demand, Earnings

JEL Classification: F16, J23, J31

Suggested Citation

Benguria, Felipe, Worker Adjustment to Trade Shocks: Where You Work or What You Do? (January 18, 2017). Available at SSRN: https://ssrn.com/abstract=2904100 or http://dx.doi.org/10.2139/ssrn.2904100

Felipe Benguria (Contact Author)

University of Kentucky - Gatton College of Business and Economics ( email )

550 South Limestone
Lexington, KY 40506
United States

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