89 Pages Posted: 14 Jul 2017
Date Written: June 2017
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: 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