Trade shocks and labor adjustment

theory
  • 4.39 MB
  • 9369 Downloads
  • English
by
National Bureau of Economic Research , Cambridge, MA
StatementStephen Cameron, Shubham Chaudhuri, John McLaren.
SeriesNBER working paper series -- working paper 13463, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13463.
ContributionsChaudhuri, Shubham., McLaren, John, 1962-, National Bureau of Economic Research.
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL23859449M
LC Control Number2007616578

Details Trade shocks and labor adjustment FB2

Get this from a library. Trade shocks and labor adjustment: theory. [Stephen Cameron; Shubham Chaudhuri; John McLaren; National Bureau of Economic Research.] -- "We construct a dynamic, stochastic rational expectations model of labor reallocation within a trade model that is designed so that its key parameters can be estimated for trade policy analysis.

The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade David H. Autor, David Dorn, Gordon H. Hanson. NBER Working Paper No. Issued in January NBER Program(s):International Trade and Investment, Labor Studies. China’s emergence as a great economic power has induced an epochal shift in patterns of world trade.

Get this from a library. Trade Shocks and Labor Adjustment: Theory. [Stephen Cameron; Shubham Chaudhuri; John McLaren] -- We construct a dynamic, stochastic rational expectations model of labor reallocation within a trade model that is designed so that its key parameters can be estimated for trade policy analysis.

A key. globalization, labor-market adjustment, local labor markets, inequality Abstract China’s emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has challenged much of the received empirical wisdom about how labor markets adjust to trade Size: 1MB.

Erhan Artuç & Shubham Chaudhuri & John McLaren, "Trade Shocks and Labor Adjustment: A Structural Empirical Approach," American Economic Review, American Economic Association, vol.

(3), pagesJune. Downloadable. The welfare effects of trade shocks depend crucially on the nature and magnitude of the costs workers face in moving between sectors. The existing trade literature does not directly address this, assuming perfect mobility or complete immobility, or adopting reduced-form approaches to estimation.

We present a model of dynamic labor adjustment that does, and which is, moreover. The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade Article (PDF Available) in Annual Review of Economics 8(1) February with Reads How we measure 'reads'.

"Recent Findings on Trade and Inequality." Joint with Ann Harrison and Margaret McMillan. Annual Reviews of Economics. Volume 3, September “A Structural Empirical Approach to Trade Shocks and Labor Adjustment: An Application to Turkey” (Joint with Erhan Artuç). In Guido Porto (ed.)(), Adjustment Costs and Adjustment Impacts of Trade Policy, World Bank.

The research presented here, conducted by Professors David Autor (), David Dorn (University of Zurich), Gordon Hanson (University of California San Diego), and research partners, studies the economic benefits and costs of trade costs include distributional impacts, which economic theory has long recognized, as well as adjustment costs, which formerly have been underestimated.

But look at actual economics research, and you will find a very different picture.

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The most recent example is a paper by celebrated labor economists David Autor, David Dorn and Gordon Hanson, titled “The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade.”.

Book Chapters and Other Publications “A Structural Empirical Approach to Trade Shocks and Labor Adjustment: An Application to Turkey,” with J. McLaren, in Trade Adjustment Costs in Developing Countries: Impacts, Determinants and Policy Responses, B.

Hoekman and G. Porto (eds.) World Bank and CEPR, Labor markets in Australia have adjusted smoothly to significant declines in commodity prices with little increase in unemployment. This paper examines several aspects of the adjustment, focusing on (i) evidence of increased labor market frictions following the commodity price decline; (ii) flexibility in labor input adjustment in response to demand shocks; (iii) changes in labor productivity.

Explores the role of mobility costs in shaping labor adjustment to structural trade shocks without imposing assumptions about how labor markets function, using “reduced-form” econometric regression models to analyze the equilibrium effects of a trade policy reform on the labor market, which makes it possible to test the predictions of the structural choice models of the Trade and Labor.

‘ The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade ’, by David Autor, David Gorn, and Gordon Hanson, looks at the economic impact of trade with China on US manufacturing. To simplify immensely, they find that the costs of trade are higher than previously thought (but importantly, still a net benefit to both.

Trade Adjustment Costs in Developing Countries: Impacts, 1 Determinants and Policy Responses PART A. ADJUSTMENT COSTS 2. Modeling, Measuring, and Compensating the Adjustment Costs 25 Associated with Trade Reforms Carl Davidson and Steven Matusz 3.

A Structural Empirical Approach to Trade Shocks and Labor 37 Adjustment: An Application to Turkey. Yet rather than blame trade, we pointed a finger at “a laissez-faire ideology that sees labor markets as automatically self-correcting,” and the underinvestment in the forms of social insurance and trade adjustment policy that cushion economic shocks and help transition workers into new forms of.

The main findings of the report are that: labor mobility costs in developing countries are high; foregone trade gains due to frictions in labor mobility can also be substantial; workers bear the brunt of adjustment costs; mobility costs and labor market adjustments to trade-related shocks vary by industry, firm type, and worker type; entry co.

When, however, workers are unable to move in response to an exogenous shock, such as a change in trade policy or in the international market, the total costs incurred by workers (and the economy) are defined as labor adjustment costs.

For a trade-related shock, adjustment costs due to sluggish reallocation of labor can be interpreted as. and industry specific nature of trade shocks, one would think that labor market adjustment programs oriented at changing the skill composition (permanent change) of workers affected by.

Davidson and Matusz provide much-needed theoretical underpinnings for understanding the labor market consequences of international trade. Traditional models of international trade assume that labor markets adjust instantaneously to trade by:   “Labor-market adjustment to trade shocks is stunningly slow,” write economists David Autor at the Massachusetts Institute of Technology, David Dorn at the University of Zurich, and Gordon.

Fiscal constraints, labor market adjustment, exchange rates, and the political economy of adjustment as each relates to the external shocks of the s are investigated. A major essay by Montague Lord shows Latin American potential to reap substantial gains by pursuing policies to encourage expansion of its resource-based comparative-advantage.

Compara­ tive examination across countries of labor market and related insitutions is thus possible. The book has a common theme, namely the adjustment of labor markets to exogenous shocks, particularly those externally induced.

The unifying focus in on workers whose specific skills in an industry or firm render them relatively immobile. Trade adjustment costs in developing countries: impacts, determinants and policy responses (English) Abstract.

Integration into the global economy offers an enormous opportunity for reducing poverty, hunger, and economic injustice. Krugman, in his new essay, admits that the economists like him in favor of the ’90s consensus behind free trade—who thought that the effects. Book. Series: Books Author(s): Antonio Spilimbergo, and Krishna Srinivasan This chapter investigates the extent of the relative price shocks across regions and the labor market adjustment, using estimates of heterogeneous regional effects of liberalization on the labor market, and analyzes the implications of that heterogeneity for.

“Labor market adjustment to trade shocks is stunningly slow,” Autor, Hanson, and Dorn wrote in a separate paper, “with local labor-force participation rates remaining depressed and local.

This paper presents a comparative analysis of the macroeconomic adjustment in Chile, Colombia, and Peru to commodity terms-of-trade shocks. The study is done in two steps: (i) an analysis of the impulse responses of key macroeconomic variables to terms-of-trade shocks and (ii) an event study of the adjustment to the recent decline in commodity prices.

A sizable literature on adjustment developed in response to the trade shocks in the s showing, among other things, that these adjustment costs are heterogeneous across sectors and workers, falling particularly hard on older workers in declining sectors (e.g.

Kletzer, ).

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Trade Adjustment Assistance for Workers or Trade Adjustment Assistance or TAA Program—This NPRM modifies these defined terms from 20 CFR (mm) to state that the programs included as part of the TAA Program include RTAA and also to refer generally to the provision of benefits and services to trade-affected workers as described in this NPRM.

Erhan Artuç, Shubham Chaudhuri and John McLaren (), ‘Trade Shocks and Labor Adjustment: A Structural Empirical Approach’ Rafael Dix-Carneiro (), ‘Trade Liberalization and Labor Market Dynamics’ Gueorgui Kambourov (), ‘Labour Market Regulations and the Sectoral Reallocation of Workers: The Case of Trade Reforms’.This article reviews the theoretical and the empirical literature on regionalism.

The formation of regional trade agreements has been, by far, the most popular form of reciprocal trade liberalization in the past 15 years. The discriminatory character of these agreements has raised three main concerns: that trade diversion would be rampant, because special interest groups would induce Cited by:   Trade Shocks, Taxes, and Inequality 1.

Trade Shocks, Taxes, and Inequality† Douglas L. Campbell Lester Lusher [email protected] [email protected] New Economic School UC Davis April, PRELIMINARY WORKING PAPER VERSION Abstract We study the impact of trade shocks on inequality using newly constructed micro and macro data.