Artuc, ErhanBastos, PauloLee, Eunhee2021-04-192021-04-192021-04https://hdl.handle.net/10986/35449This 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.CC BY 3.0 IGOTRADE SHOCKLABOR MOBILITYTRADE ADJUSTMENTWORKER WELFAREJOBSLABOR MARKETEMPLOYMENTWorking PaperWorld Bank10.1596/1813-9450-9628