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Workers' age and the impact of trade shocks, Volume 1
 
Author:Artuc, Erhan; Country:World;
Date Stored:2012/04/10Document Date:2012/04/01
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Tertiary Education; Trade Policy; Labor Markets; Labor Policies
Language:EnglishMajor Sector:Industry and trade
Rel. Proj ID:1W-Trade And Poverty- -- P111069;Region:The World Region
Report Number:WPS6035Sub Sectors:Other domestic and international trade
Collection Title:Policy Research working paper ; no. WPS 6035Volume No: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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