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Trade-related Job Loss and Wage Insurance: A Synthetic Review

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  • Kletzer, Lori

Abstract

This paper seeks to promote further integration of empirical and theoretical discussions of trade and worker adjustment. From my recent studies of the costs of job loss, I develop a set of stylized facts of trade-related job loss, with a focus on worker characteristics and labor market consequences. These stylized facts are relevant to any (credible) model of trade liberalization and adjustment costs. I then discuss the basic ideas of wage insurance and summarize the little that is known about how a program might work if implemented in the U.S. A final section provides a list of issues for a model of trade that will be consistent with the empirical stylized facts, sets out questions for future research and concludes.

Suggested Citation

  • Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Department of Economics, Working Paper Series qt27w182ht, Department of Economics, UC Santa Cruz.
    • Handle: RePEc:cdl:ucscec:qt27w182ht
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    1. Brander, James A. & Spencer, Barbara J., 1994. "Trade adjustment assistance : Welfare and incentive effects of payments to displaced workers," Journal of International Economics, Elsevier, vol. 36(3-4), pages 239-261, May.
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    7. Brecher, Richard A. & Choudhri, Ehsan U., 1994. "Pareto gains from trade, reconsidered : Compensating for jobs lost," Journal of International Economics, Elsevier, vol. 36(3-4), pages 223-238, May.
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    12. Baily, Martin Neil, 1978. "Some aspects of optimal unemployment insurance," Journal of Public Economics, Elsevier, vol. 10(3), pages 379-402, December.
    13. Lori G. Kletzer, 2002. "Imports, Exports, and Jobs: What Does Trade Mean for Employment and Job Loss?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number iej, November.
    14. Lori G. Kletzer & Robert E. Litan, 2001. "A Prescription to Relieve Worker Anxiety," Policy Briefs PB01-02, Peterson Institute for International Economics.
    15. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
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    Cited by:

    1. Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc.
    2. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 13(4), pages 55-121.

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