Does Trade Adjustment Assistance Make a Difference?

17 Pages Posted: 6 Jan 2012

See all articles by Kara M. Reynolds

Kara M. Reynolds

American University - Department of Economics

John S. Palatucci

affiliation not provided to SSRN

Date Written: January 2012

Abstract

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 data collected by the Department of Labor on TAA beneficiaries to provide the most recent econometric evaluation of the effectiveness of the TAA program. Summary statistics suggest that the TAA program successfully targets displaced workers who have a greater difficulty finding new employment. However, using propensity score matching techniques we find that while the required training component of the program improves the employment outcomes of beneficiaries, on average the TAA program has no discernible impact on the employment outcomes of the participants.

JEL Classification: F16

Suggested Citation

Reynolds, Kara M. and Palatucci, John S., Does Trade Adjustment Assistance Make a Difference? (January 2012). Contemporary Economic Policy, Vol. 30, Issue 1, pp. 43-59, 2012, Available at SSRN: https://ssrn.com/abstract=1980527 or http://dx.doi.org/10.1111/j.1465-7287.2010.00247.x

Kara M. Reynolds (Contact Author)

American University - Department of Economics ( email )

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John S. Palatucci

affiliation not provided to SSRN

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