Publication: Trade, Jobs, and Worker Welfare
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2021-04
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2021-04-19
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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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“Artuc, Erhan; Bastos, Paulo; Lee, Eunhee. 2021. Trade, Jobs, and Worker Welfare. Policy Research Working Paper;No. 9628. © World Bank. http://hdl.handle.net/10986/35449 License: CC BY 3.0 IGO.”
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