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

Paul T. Decker · Walter A. Corson

101 citations0/0 files storedIndustrial and Labor Relations Review

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Labor market dynamics and wage inequality Global trade and economics Employment and Welfare Studies

Abstract

The Trade Adjustment Assistance (TAA) program offers unemployment compensation and re-employment adjustment services to workers who lose their jobs due to increased import competition. In 1981 and again in 1988, the program rules were changed to shift the emphasis from compensation to training. This paper examines the pre-layoff characteristics and post-layoff labor market experience of two nationally representative samples of TAA program participants, one of which participated in the program just before the 1988 amendments and the other just after. The authors find that the TAA program was well targeted during the time period studied: it served workers who were permanently displaced from their jobs and who experienced significant earnings losses due to their layoff. They find no evidence, however, tha training had a substantial positive impact on earnings of TAA trainees, at least in the first three years after their initial unemployment insurance claim.

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1992Earnings Losses of Displaced Workers 1988Efficiency Wages and the Inter-Industry Wage Structure 1991Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority 1990Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority 1991Are Workers Permanently Scarred by Job Displacements 1988Unemployment and the Structure of Labor Markets.1986Reflections on the Inter-Industry Wage Structure 1990Specific capital and unemployment: Measuring the costs and consequences of job loss

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