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Trade, Jobs, and Worker Welfare / Erhan Artuc.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Artuc, Erhan.
Contributor:
Bastos, Paulo.
Lee, Eunhee.
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Employment.
International Economics and Trade.
Jobs.
Labor Markets.
Labor Mobility.
Social Protections and Labor.
Trade Adjustment.
Trade Shock.
Worker Welfare.
Local Subjects:
Employment.
International Economics and Trade.
Jobs.
Labor Markets.
Labor Mobility.
Social Protections and Labor.
Trade Adjustment.
Trade Shock.
Worker Welfare.
Physical Description:
1 online resource (73 pages)
Place of Publication:
Washington, D.C. : The World Bank, 2021.
System Details:
data file
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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