Jobs Loss From Imports: Measuring The Costs by Lori G. Kletzer | 9780881322965 | Paperback | Barnes & Noble
Jobs Loss From Imports: Measuring The Costs

Jobs Loss From Imports: Measuring The Costs

by Lori G. Kletzer
     
 

ISBN-10: 0881322962

ISBN-13: 9780881322965

Pub. Date: 09/01/2001

Publisher: Peterson Institute for International Economics

There is an important question lost in the debate over the number of jobs created or destroyed by trade liberalization: as the dynamic American economy continues to change, with freer trade and technological advance, what kind of work will Americans do? Jobs are created and lost and workers get displaced in a dynamic economy. Moving beyond the recent public

Overview

There is an important question lost in the debate over the number of jobs created or destroyed by trade liberalization: as the dynamic American economy continues to change, with freer trade and technological advance, what kind of work will Americans do? Jobs are created and lost and workers get displaced in a dynamic economy. Moving beyond the recent public policy focus on how many workers will be affected, this study focuses on understanding how these workers will be affected. Using worker-level data from the Displaced Worker Surveys, Lori G. Kletzer asks and answers a number of key questions about the cost of trade-related job loss. How do these workers compare to other displaced manufacturing industries? How sizeable are the earnings losses? What can we learn from the pattern of re-employment and earnings that will aid in the (re) design of adjustment services?The costs of import-competing job loss are high for some workers, but not starkly higher than the costs of other types of manufacturing job loss. For many manufacturing displaced workers, the best outcome, in terms of minimizing medium-term earnings losses, is to regain employment in the "old economy," back in manufacturing. New jobs in the service economy tend to result in larger earnings losses. This report reveals a narrow, but significant, group of workers for whom import-competing job loss is very costly. For other workers, realized costs are smaller. Understanding this range of outcomes should assist policymakers in targeting assistance to address the real costs of import-competing job loss. About the Author: Lori G. Kletzer, Visiting Fellow, is Associate Professor of Economics at the University of California, Santa Cruz. Her previous affiliations include Williams College, the Brookings Institution, and the University of Washington. She has received research grants from the National Science Foundation, the Andrew W. Mellon Foundation, and the U.S. Department of Labor. She is the author of numerous articles and a forthcoming research monograph on trade, job loss, and employment for the W. E. Upjohn Institute for Employment Research.

Product Details

ISBN-13:
9780881322965
Publisher:
Peterson Institute for International Economics
Publication date:
09/01/2001
Series:
Globalization Balance Sheet Ser.
Edition description:
New Edition
Pages:
150
Product dimensions:
6.00(w) x 8.90(h) x 0.40(d)

Table of Contents

1 Introduction: Focusing on Displaced Workers1
Important Questions—and Answers2
Informing Future Policymaking6
Thinking about Trade and Labor6
2 Defining Import-Competing Manufacturing Job Loss9
Manufacturing, in Brief9
Imports, Exports, Employment, and Job Loss11
Defining Trade-Related Job Loss12
Measuring Imports, Exports, and Job Loss14
Defining an Import-Competing Industry15
Exports and Import-Competing Industries22
3 Who Are Import-Competing Displaced Workers?27
Comparing Manufacturing with Nonmanufacturing Workers28
Outcomes after Job Loss31
Comparing Import-Competing Displaced Workers with Other
Manufacturing Workers33
Summary, and a Look Ahead40
4 Reemployment after Job Loss43
The Full Sample45
The Manufacturing Sample49
Summary52
5 Understanding Earning Losses55
Background: Human Capital and Wage Determination55
Looking More Closely at Changes in Earnings57
The Importance of Industry for Earnings Change61
6 Where Are Import-Competing Displaced Workers Reemployed?63
Reemployment Sector and Earnings Changes63
Sectoral Reemployment in More Detail70
Implications for "Trade" and Labor Reallocation74
7 Conclusions and Policy Implications: Addressing Costly Job
Loss77
Import-Competing Job Loss and Reemployment78
Current Compensation for Displaced Workers80
Policy Implications82
Appendix A Data on Trade Flows and Job Loss89
Appendix B Intraindustry Trade93
Appendix C Summary of Longitudinal Studies of
Postdisplacement Earnings Changes95
Appendix D Tables97
References111
Index115
Tables
Table 2.1 High import-competing industries and job
displacement, 1979-9918
Table 3.1 Characteristics of displaced manufacturing and
nonmanufacturing workers, 1979-9929
Table 3.2 Characteristics of displaced workers, by
manufacturing-industry level of import competition,34
Table 3.3 Postdisplacement outcomes, by
manufacturing-industry level of import competition,36
Table 3.4 Characteristics of high import-competing
industry workers, rank ordered by number of workers38
Table 4.1 Change in the probability of reemployment, full
sample44
Table 4.2 Change in the probability of reemployment,
manufacturing sample50

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