Margins of labor market adjustment to trade

Abstract

Verhoogen, and participants at various conferences and seminars for helpful comments. Dix-Carneiro thanks Daniel Lederman and the Office of the Chief Economist for Latin America and the Caribbean at the World Bank for warmly hosting him while part of the paper was written. Remaining errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Adjusting to Globalization in Germany

“…Our article contributes to two literatures investigating the labor market effects of trade. A recent literature studies the worker-level effects of trade using administrative datasets with contributions by Autor, Dorn, Hanson, and Song (2014), Dix-Carneiro and Kovak (2017a), and Utar (2016). Our paper is different and complements these studies by our focus on exports which allows us to make an important and previously missing connection to a growing theoretical literature.…”

Economic Shocks and Crime: Evidence from the Brazilian Trade Liberalization

“…Trade liberalization effectively started in March 1990 when the newly elected president unexpectedly eliminated non-tariff barriers (e.g., suspended import licenses and special customs regime), often immediately replacing them with higher import tariffs in a process known as "tariffication" (tarificação, see de Carvalho 1992). 8 Although this change left the effective protection system unaltered, it left tariffs as the main trade policy instrument. Thus, starting in 1990, tariffs accurately reflected the level of protection faced by Brazilian firms across industries.…”

“…12 Finally, tariff cuts were almost perfectly correlated with pre-liberalization tariff levels (correlation coefficient of −0.90), as sectors with initially higher tariffs experienced larger subsequent reductions. This led not only to a reduction in the average 8 Online Appendix A shows the time series of tariffs. Note the tariff increases in 1990 for the auto and electronic equipment industries.…”

“…Given that the RT C r shocks had distinct dynamic effects on many variables of interest, we can construct two instrumental variables and confront employment rates against each of the remaining channels in equation 2, one by one. In other words, we can estimate regressions such as (8) Δ t log ( C R r ) = β e Δ t log ( P e, r )…”

Potential consequences of post-Brexit trade barriers for earnings inequality in the UK

“…Recent studies have highlighted the importance of a worker's location in determining their exposure to a given shock. Workers living in areas with a greater concentration of affected industries tend to fare worse than similar workers elsewhere, and these effects can persist for many years (Dix-Carneiro (2014), Helpman et al (2013), Topalova (2007), Hakobyan and McLaren (2016), Autor et al (2013), Dix-Carneiro and Kovak (2017)). This suggests that labour and capital are slow to reallocate in response to demand shocks.…”