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...

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Main Authors: Artuc, Erhan, Bastos, Paulo, Lee, Eunhee
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/659891618336551751/Trade-Jobs-and-Worker-Welfare
http://hdl.handle.net/10986/35449
id okr-10986-35449
recordtype oai_dc
spelling okr-10986-354492022-09-20T00:09:44Z Trade, Jobs, and Worker Welfare Artuc, Erhan Bastos, Paulo Lee, Eunhee TRADE SHOCK LABOR MOBILITY TRADE ADJUSTMENT WORKER WELFARE JOBS LABOR MARKET EMPLOYMENT 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. 2021-04-19T19:26:48Z 2021-04-19T19:26:48Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/659891618336551751/Trade-Jobs-and-Worker-Welfare http://hdl.handle.net/10986/35449 English Policy Research Working Paper;No. 9628 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TRADE SHOCK
LABOR MOBILITY
TRADE ADJUSTMENT
WORKER WELFARE
JOBS
LABOR MARKET
EMPLOYMENT
spellingShingle TRADE SHOCK
LABOR MOBILITY
TRADE ADJUSTMENT
WORKER WELFARE
JOBS
LABOR MARKET
EMPLOYMENT
Artuc, Erhan
Bastos, Paulo
Lee, Eunhee
Trade, Jobs, and Worker Welfare
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 9628
description 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.
format Working Paper
author Artuc, Erhan
Bastos, Paulo
Lee, Eunhee
author_facet Artuc, Erhan
Bastos, Paulo
Lee, Eunhee
author_sort Artuc, Erhan
title Trade, Jobs, and Worker Welfare
title_short Trade, Jobs, and Worker Welfare
title_full Trade, Jobs, and Worker Welfare
title_fullStr Trade, Jobs, and Worker Welfare
title_full_unstemmed Trade, Jobs, and Worker Welfare
title_sort trade, jobs, and worker welfare
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/659891618336551751/Trade-Jobs-and-Worker-Welfare
http://hdl.handle.net/10986/35449
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