Margins of labor market adjustment to trade

By Rafael Dix-Carneiro, Brian Kovak. Journal of International Economics, 2019

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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.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/f30ad8e39780b9723dab91bd7952817d423e8400

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In Economics and Econometrics

  1. Gabriel Ulyssea

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