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2016 J. Int'l Com. & Econ. 1 (2016)

handle is hein.journals/jice2016 and id is 1 raw text is: 













A Survey of Empirical

           Models of Labor

Transitions Following

   Trade Liberalization


Web version:
June 2016


Authors':
David Riker and
William Swanson


In this article, we survey prominent recent empirical studies that explain why
labor markets adjust slowly after a country reduces its barriers to trade. The
models that we cover are technically complex: they simulate the economy-wide
transitions that result from the employment decisions of individual workers who
face costs of moving between sectors, loss of the usefulness of their sector-specif-
ic experience, and many types of uncertainty. The adjustment costs in the models
vary across types of workers, and the speed of adjustment varies across the coun-
tries studied and the modeling assumptions adopted. We present these techni-
cal models in a relatively nontechnical way. We summarize the similarities and
differences in the assumptions and findings of the different economic studies.


    1 This article represents solely the views of the authors and not the views of the United States International
Trade Commission or any of its individual Commissioners. This paper should be cited as the work of the authors
only, and not as an official Commission document. Please direct all correspondence to David Riker, Office of
Economics, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436, or by email to david.
riker usitc.gov.


Abstract


Suggested citation: Riker, David and William Swanson. A Survey of Empirical Models of
Labor Transitions Following Trade Liberalization, journal of International Commerce and
Economics. Published electronically May 2016. https://www.usitc.gov/journals/jice-home.
htm.

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