International Trade and Worker Displacement: Evaluation of the Trade Adjustment Assistance Program

Decker, Paul T.; Corson, Walter

doi:10.1177/001979399504800410

Cited by 58 publications

(23 citation statements)

References 4 publications

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“…More recently, Decker and Corson (1995) used a survey of TAA participants between 1988 and 1989 to evaluate the impact of the 1988 amendments to the program that mandated participation in a training program. The authors find that the 1988 changes in the TAA program increased participation in training programs, reduced the amount of TRA collected by beneficiaries, and led to a decline in the duration of unemployment.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Trade Adjustment Assistance Make a Difference?

Reynolds

Palatucci

2011

Contemporary Economic Policy

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The U.S. Trade Adjustment Assistance (TAA) program provides workers who have lost their jobs due to increased trade with income support and training, job search, and relocation benefits. This paper uses data collected by the Department of Labor on TAA beneficiaries to provide the most recent econometric evaluation of the effectiveness of the TAA program. Summary statistics suggest that the TAA program successfully targets displaced workers who have a greater difficulty finding new employment. However, using propensity score matching techniques we find that while the required training component of the program improves the employment outcomes of beneficiaries, on average the TAA program has no discernible impact on the employment outcomes of the participants. (JEL F16)

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Section: Literature Reviewmentioning

confidence: 99%

Does Trade Adjustment Assistance Make a Difference?

Reynolds

Palatucci

2011

Contemporary Economic Policy

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“…Two previous ITG studies found no positive impacts of ITG participation on wages (Benus et al, 1996;Whittaker, 2002). Studies of other programs also found no impact on wages (Corson and Haimson, 1996;Decker and Corson, 1995). However, some quasi-experimental studies have found positive impacts on wages (Benus and Byrnes, 1993;Jacobson et al, 1994;Hollenbeck and Huang, 2003).…”

Section: Overall Impactmentioning

confidence: 99%

Vocational training for the unemployed: its impact on uncommonly served groups

Hebbar

2006

International Journal of Manpower

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Purpose -This paper aims to examine the impact of vocational training on unemployed workers not typically studied: women enrolled in engineering or computer programming training and high school dropouts. Design/methodology/approach -Using data from New Jersey's Individual Training Grant (ITG) program and a quasi-experimental design, the study compares the ITG groups' re-employment and wage recovery rates with a matched comparison group. Findings -The article finds that women enrolled in the male-dominated fields of engineering or computer programming experience re-employment rates that are lower than or similar to those in the comparison group, but they experience higher wage recovery in 8th and 12th quarters after claiming unemployment insurance (UI). Hispanic high school dropouts experience both higher re-employment and wage recovery rates than their comparison group, but the wage recovery advantage disappears when those enrolled in truck driving training are removed from the sample. Further, white and black high school dropouts experience no re-employment or wage recovery advantage. For all participants, the study finds participants experience a higher re-employment rate than the comparison group beginning in the fifth quarter and experience no wage recovery advantage. Research limitations/implications -To address the concern of selection bias, a difference-in-difference wage model controls for time-variant differences in unobservables and an employment regression model controls for remaining differences in the matching variables. Practical implications -These results suggest that training improves re-employment chances and that type of training matters with respect to wage recovery. In this sample, those enrolled in truck driving training, engineering, and computer programming tended to experience higher wage recovery than their comparison group. Originality/value -This paper examines the impact of vocational training on unemployed workers not typically studied.

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“…Prior research into the effectiveness of public-funded training has frequently concluded that for the majority of workers, such programs are ineffective (Decker and Corson 1995;Leigh 1991;LaLonde 1995). However, Jacobson, LaLonde, and White / Displacement-Related Earnings Losses 227 Table 2 Sullivan (1994) reported long-run benefits for workers completing relatively rigorous community college-level vocational and academic courses.…”

Section: Evaluation Of Taa and Ataamentioning

confidence: 99%

Displacement-Related Earnings Losses

White

2008

Labor Studies Journal

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The author examines the effectiveness of stylized versions of the Trade Adjustment Assistance (TAA) and Alternative TAA (or wage insurance) programs in reducing displacement-related earnings losses. Wage insurance subsidies and returns to TAA-funded training are applied to estimates of proportional earnings losses, reported by White, that were generated using National Longitudinal Survey of Youth 1979 data spanning the period from 1979 to 2000. Wage insurance reduces the typical worker's losses by 14.4 percent, while TAA-funded training is estimated to reduce losses by 23.7 percent. However, variation in the time paths and magnitudes of losses produces considerable variation in the effects of these programs across worker types.

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International Trade and Worker Displacement: Evaluation of the Trade Adjustment Assistance Program

Cited by 58 publications

References 4 publications

Does Trade Adjustment Assistance Make a Difference?

Does Trade Adjustment Assistance Make a Difference?

Vocational training for the unemployed: its impact on uncommonly served groups

Displacement-Related Earnings Losses

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