Artuc, ErhanMcLaren, John2013-01-022013-01-022012-09https://hdl.handle.net/10986/12033A number of authors have argued that a worker's occupation of employment is at least as important as the worker's industry of employment in determining whether the worker will be hurt or helped by international trade. This paper investigates the role of occupational mobility on the effects of trade shocks on wage inequality in a dynamic, structural econometric model of worker adjustment. Each worker in the model can switch either industry, occupation, or both, paying a time-varying cost to do so in a rational-expectations optimizing environment. The authors find that the costs of switching industry and occupation are both high, and of similar magnitude, but in simulations they find that a worker's industry of employment is much more important than either the worker's occupation or skill class in determining whether he or she is harmed by a trade shock.en-USCC BY 3.0 IGOAGRICULTUREAVERAGE WAGEAVERAGE WAGESCOLLEGE EDUCATIONCOLLEGE GRADUATESCOLLEGE-EDUCATED WORKERCOLLEGE-EDUCATED WORKERSCOMPARATIVE ADVANTAGECONSUMER PRICE INDEXCONSUMERSCRAFT OCCUPATIONSDECISION MAKINGDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRICTSDOMESTIC MARKETDYNAMIC ANALYSISECONOMICSECONOMICS RESEARCHELASTICITYELASTICITY OF SUBSTITUTIONEMPLOYMENTEMPLOYMENT LEVELSENTRY COSTENTRY COSTSEQUILIBRIUMEXPECTED WAGEEXPORTSFOREIGN WORKERSGDPGROUP WORKERSHIGH WAGESHUMAN CAPITALINCOMEINCOME DISTRIBUTIONINCOME INEQUALITYINSURANCEINTERNATIONAL TRADEJOBSLABOR ADJUSTMENTLABOR ALLOCATIONLABOR ALLOCATIONSLABOR FORCELABOR MARKETLABOR MARKET ADJUSTMENTLABOR MARKET POLICIESLABOR MOBILITYLABOR REALLOCATIONLABORERSLOCAL LABOR MARKETLONG-RUN EFFECTMANUFACTURING WAGEMANUFACTURING WAGESMARGINAL COSTMARGINAL PRODUCTMARGINAL PRODUCTSMARGINAL VALUEOCCUPATIONOCCUPATIONAL CHOICEOCCUPATIONAL MOBILITYOCCUPATIONSOFFICE WORKERSOPTIMIZATIONPOLITICAL ECONOMYPRODUCT PRICESPRODUCTION FUNCTIONSREAL WAGEREAL WAGESREGRESSION ANALYSISRETAIL TRADESERVICE OCCUPATIONSSKILL GROUPSKILL GROUPSSKILL PREMIUMSKILLED LABORSKILLED WORKERSTRADE BARRIERSTRADE LIBERALIZATIONTRADE POLICYTRADE REFORMSTRUCK DRIVERSUNEMPLOYMENTUNSKILLED WORKERSUTILITY FUNCTIONVALUE OF OUTPUTWAGE DIFFERENTIALWAGE DIFFERENTIALSWAGE EFFECTWAGE EFFECTSWAGE INCREASEWAGE INCREASESWAGE INEQUALITYWAGE LOSSESWHITE COLLAR WORKERSWHITE-COLLAR OCCUPATIONWHITE-COLLAR OCCUPATIONSWORK IN PROGRESSWORKERWORKER HETEROGENEITYWORKER PRODUCTIVITYWORKERSWORKINGWorld Bank10.1596/1813-9450-6194