Trade, Jobs, and Worker Welfare

Erhan Artuc, Paulo Bastos and Eunhee Lee

No 9628, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Rural Labor Markets; International Trade and Trade Rules; Labor Markets; Trade and Multilateral Issues (search for similar items in EconPapers)
Date: 2021-04-13
New Economics Papers: this item is included in nep-dcm, nep-dge and nep-int
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Related works:
Working Paper: Trade, Jobs, and Worker Welfare (2021)
Working Paper: Trade, Jobs, and Worker Welfare (2019)
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