Workers' Age and the Impact of Trade Shocks
Do trade shocks affect workers differently because of their age? This paper examines the issue by estimating the lifetime mobility of workers based on the sectors in which they work. Using U.S. data, the paper shows that mobility costs rise with a...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/04/16219615/workers-age-impact-trade-shocks http://hdl.handle.net/10986/6037 |
| Summary: | Do trade shocks affect workers
differently because of their age? This paper examines the
issue by estimating the lifetime mobility of workers based
on the sectors in which they work. Using U.S. data, the
paper shows that mobility costs rise with a worker's
age and years of experience, but stay the same regardless of
his or her education level. In addition, using a
general-equilibrium simulation of counterfactual
trade-liberalization policies in the metal manufacturing
sector, the paper shows that trade shocks affect workers
with higher mobility costs more, for both winners and losers
of the policy shocks. But the effects taper off over a
worker's lifetime, especially when they are close to retirement. |
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