Margins of Labor Market Adjustment to Trade

89 Pages Posted: 14 Jul 2017  

Rafael Dix-Carneiro

Duke University

Brian K. Kovak

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Multiple version iconThere are 2 versions of this paper

Date Written: June 2017

Abstract

We use both longitudinal administrative data and cross-sectional household survey data to study the margins of labor market adjustment following Brazil’s early 1990s trade liberalization. We document how workers and regional labor markets adjust to trade-induced changes in local labor demand, examining various adjustment margins, including earnings and wage changes; interregional migration; shifts between tradable and nontradable employment; and shifts between formal employment, informal employment, and non-employment. Our results provide insight into the regional labor market effects of trade, and have important implications for policies that address informal employment and that assist trade-displaced workers.

JEL Classification: F14, F16, J46, J61

Suggested Citation

Dix-Carneiro, Rafael and Kovak, Brian K., Margins of Labor Market Adjustment to Trade (June 2017). Economic Research Initiatives at Duke (ERID) Working Paper No. 248. Available at SSRN: https://ssrn.com/abstract=3002084

Rafael Dix-Carneiro (Contact Author)

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Brian K. Kovak

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

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