Margins of Labor Market Adjustment to Trade

Friday, March 1, 2019
Rafael Dix-Carneiroa, Brian K.Kovak

Abstract

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.

Citation: 

Rafael Dix-Carneiroa and Brian K.Kovak. "Margins of Labor Market Adjustment to Trade." Journal of International Economics. Volume 117, March 2019, Pages 125-142.

Journal of International Economics