Workers ' age and the impact of trade shocks, Vol. 1 of 1

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Workers' age and the impact of trade shocks

Author:	Artuc, Erhan;	Collection Title:	Policy Research working paper ; no. WPS 6035
Country:	World;	Date Stored:	2012/04/10
Document Date:	2012/04/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Industry and trade
Rel. Proj ID:	1W-Trade And Poverty- -- P111069;	Region:	The World Region
Report Number:	WPS6035	Sub Sectors:	Other domestic and international trade
SubTopics:	Economic Theory & Research; Tertiary Education; Trade Policy; Labor Markets; Labor Policies	Volume No:	1 of 1

Summary: 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.


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