Trade, Jobs, and Worker Welfare
This paper examines the welfare effects of international trade on workers in a new dynamic general equilibrium discrete choice model of labor mobility, where the workers’ choice set of jobs is endogenous. The analysis exploits differential exposure...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/659891618336551751/Trade-Jobs-and-Worker-Welfare http://hdl.handle.net/10986/35449 |
| Summary: | This paper examines the welfare effects
of international trade on workers in a new dynamic general
equilibrium discrete choice model of labor mobility, where
the workers’ choice set of jobs is endogenous. The analysis
exploits differential exposure of sectors and regions to
destination-specific demand shocks to estimate the impacts
of exports on wages, employment, and labor mobility, using
employer-employee panel data for Brazil. It then employs the
same empirical strategy to estimate structural parameters
and the different components of changes in model-implied
worker welfare. Counterfactual simulations show that the
endogenous number of job options significantly magnifies the
welfare effects of trade shocks. |
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