Workers'Age and the Impact of Trade Shocks

43 Pages Posted: 20 Apr 2016

See all articles by Erhan Artuc

Erhan Artuc

World Bank; World Bank - Development Research Group (DECRG)

Date Written: April 1, 2012

Abstract

Do trade shocks affect workers differently because of their age? This paper examines the issue by estimating the lifetime mobility of workers based on the sectors in which they work. Using U.S. data, the paper shows that mobility costs rise with a worker's age and years of experience, but stay the same regardless of his or her education level. In addition, using a general-equilibrium simulation of counterfactual trade-liberalization policies in the metal manufacturing sector, the paper shows that trade shocks affect workers with higher mobility costs more, for both winners and losers of the policy shocks. But the effects taper off over a worker's lifetime, especially when they are close to retirement.

Keywords: Economic Theory & Research, Labor Markets, Tertiary Education, Labor Policies, Trade Policy

Suggested Citation

Artuc, Erhan, Workers'Age and the Impact of Trade Shocks (April 1, 2012). World Bank Policy Research Working Paper No. 6035, Available at SSRN: https://ssrn.com/abstract=2038180

Erhan Artuc (Contact Author)

World Bank ( email )

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Washington, DC 20433
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World Bank - Development Research Group (DECRG)

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Washington, DC 20433
United States

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