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Margins of Labor Market Adjustment to Trade

Rafael Dix-Carneiro and Brian K. Kovak

No 23595, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: F14 F16 J46 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int, nep-iue, nep-lma and nep-mig
Date: 2017-07
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Forthcoming: Margins of Labor Market Adjustment to Trade , Rafael Dix-Carneiro, Brian K. Kovak. in Trade and Labor Markets , Hanson and Redding. 2018
Published as Rafael Dix-Carneiro & Brian K. Kovak, 2019. "Margins of Labor Market Adjustment to Trade," Journal of International Economics, .

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