Margins of labor market adjustment to trade

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, e...

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Bibliographic Details
Published in:Journal of international economics 2019-03, Vol.117, p.125-142
Main Authors: Dix-Carneiro, Rafael, Kovak, Brian K.
Format: Article
Language:English
Subjects:
Brazil
Earnings
Employment
Informal labor markets
Trade liberalization
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Summary: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.
ISSN:0022-1996
1873-0353
DOI:10.1016/j.jinteco.2019.01.005