Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility
A number of authors have argued that a worker's occupation of employment is at least as important as the worker's industry of employment in determining whether the worker will be hurt or helped by international trade. This paper investiga...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16711727/trade-policy-wage-inequality-structural-analysis-occupational-sectoral-mobility http://hdl.handle.net/10986/12033 |
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okr-10986-120332021-04-23T14:02:59Z Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility Artuc, Erhan McLaren, John AGRICULTURE AVERAGE WAGE AVERAGE WAGES COLLEGE EDUCATION COLLEGE GRADUATES COLLEGE-EDUCATED WORKER COLLEGE-EDUCATED WORKERS COMPARATIVE ADVANTAGE CONSUMER PRICE INDEX CONSUMERS CRAFT OCCUPATIONS DECISION MAKING DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRICTS DOMESTIC MARKET DYNAMIC ANALYSIS ECONOMICS ECONOMICS RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT LEVELS ENTRY COST ENTRY COSTS EQUILIBRIUM EXPECTED WAGE EXPORTS FOREIGN WORKERS GDP GROUP WORKERS HIGH WAGES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME INEQUALITY INSURANCE INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ALLOCATION LABOR ALLOCATIONS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET POLICIES LABOR MOBILITY LABOR REALLOCATION LABORERS LOCAL LABOR MARKET LONG-RUN EFFECT MANUFACTURING WAGE MANUFACTURING WAGES MARGINAL COST MARGINAL PRODUCT MARGINAL PRODUCTS MARGINAL VALUE OCCUPATION OCCUPATIONAL CHOICE OCCUPATIONAL MOBILITY OCCUPATIONS OFFICE WORKERS OPTIMIZATION POLITICAL ECONOMY PRODUCT PRICES PRODUCTION FUNCTIONS REAL WAGE REAL WAGES REGRESSION ANALYSIS RETAIL TRADE SERVICE OCCUPATIONS SKILL GROUP SKILL GROUPS SKILL PREMIUM SKILLED LABOR SKILLED WORKERS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRUCK DRIVERS UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION VALUE OF OUTPUT WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LOSSES WHITE COLLAR WORKERS WHITE-COLLAR OCCUPATION WHITE-COLLAR OCCUPATIONS WORK IN PROGRESS WORKER WORKER HETEROGENEITY WORKER PRODUCTIVITY WORKERS WORKING A number of authors have argued that a worker's occupation of employment is at least as important as the worker's industry of employment in determining whether the worker will be hurt or helped by international trade. This paper investigates the role of occupational mobility on the effects of trade shocks on wage inequality in a dynamic, structural econometric model of worker adjustment. Each worker in the model can switch either industry, occupation, or both, paying a time-varying cost to do so in a rational-expectations optimizing environment. The authors find that the costs of switching industry and occupation are both high, and of similar magnitude, but in simulations they find that a worker's industry of employment is much more important than either the worker's occupation or skill class in determining whether he or she is harmed by a trade shock. 2013-01-02T20:04:22Z 2013-01-02T20:04:22Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16711727/trade-policy-wage-inequality-structural-analysis-occupational-sectoral-mobility http://hdl.handle.net/10986/12033 English en_US Policy Research Working Paper; No. 6194 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE AVERAGE WAGE AVERAGE WAGES COLLEGE EDUCATION COLLEGE GRADUATES COLLEGE-EDUCATED WORKER COLLEGE-EDUCATED WORKERS COMPARATIVE ADVANTAGE CONSUMER PRICE INDEX CONSUMERS CRAFT OCCUPATIONS DECISION MAKING DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRICTS DOMESTIC MARKET DYNAMIC ANALYSIS ECONOMICS ECONOMICS RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT LEVELS ENTRY COST ENTRY COSTS EQUILIBRIUM EXPECTED WAGE EXPORTS FOREIGN WORKERS GDP GROUP WORKERS HIGH WAGES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME INEQUALITY INSURANCE INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ALLOCATION LABOR ALLOCATIONS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET POLICIES LABOR MOBILITY LABOR REALLOCATION LABORERS LOCAL LABOR MARKET LONG-RUN EFFECT MANUFACTURING WAGE MANUFACTURING WAGES MARGINAL COST MARGINAL PRODUCT MARGINAL PRODUCTS MARGINAL VALUE OCCUPATION OCCUPATIONAL CHOICE OCCUPATIONAL MOBILITY OCCUPATIONS OFFICE WORKERS OPTIMIZATION POLITICAL ECONOMY PRODUCT PRICES PRODUCTION FUNCTIONS REAL WAGE REAL WAGES REGRESSION ANALYSIS RETAIL TRADE SERVICE OCCUPATIONS SKILL GROUP SKILL GROUPS SKILL PREMIUM SKILLED LABOR SKILLED WORKERS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRUCK DRIVERS UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION VALUE OF OUTPUT WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LOSSES WHITE COLLAR WORKERS WHITE-COLLAR OCCUPATION WHITE-COLLAR OCCUPATIONS WORK IN PROGRESS WORKER WORKER HETEROGENEITY WORKER PRODUCTIVITY WORKERS WORKING |
| spellingShingle |
AGRICULTURE AVERAGE WAGE AVERAGE WAGES COLLEGE EDUCATION COLLEGE GRADUATES COLLEGE-EDUCATED WORKER COLLEGE-EDUCATED WORKERS COMPARATIVE ADVANTAGE CONSUMER PRICE INDEX CONSUMERS CRAFT OCCUPATIONS DECISION MAKING DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRICTS DOMESTIC MARKET DYNAMIC ANALYSIS ECONOMICS ECONOMICS RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EMPLOYMENT LEVELS ENTRY COST ENTRY COSTS EQUILIBRIUM EXPECTED WAGE EXPORTS FOREIGN WORKERS GDP GROUP WORKERS HIGH WAGES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME INEQUALITY INSURANCE INTERNATIONAL TRADE JOBS LABOR ADJUSTMENT LABOR ALLOCATION LABOR ALLOCATIONS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKET POLICIES LABOR MOBILITY LABOR REALLOCATION LABORERS LOCAL LABOR MARKET LONG-RUN EFFECT MANUFACTURING WAGE MANUFACTURING WAGES MARGINAL COST MARGINAL PRODUCT MARGINAL PRODUCTS MARGINAL VALUE OCCUPATION OCCUPATIONAL CHOICE OCCUPATIONAL MOBILITY OCCUPATIONS OFFICE WORKERS OPTIMIZATION POLITICAL ECONOMY PRODUCT PRICES PRODUCTION FUNCTIONS REAL WAGE REAL WAGES REGRESSION ANALYSIS RETAIL TRADE SERVICE OCCUPATIONS SKILL GROUP SKILL GROUPS SKILL PREMIUM SKILLED LABOR SKILLED WORKERS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRUCK DRIVERS UNEMPLOYMENT UNSKILLED WORKERS UTILITY FUNCTION VALUE OF OUTPUT WAGE DIFFERENTIAL WAGE DIFFERENTIALS WAGE EFFECT WAGE EFFECTS WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LOSSES WHITE COLLAR WORKERS WHITE-COLLAR OCCUPATION WHITE-COLLAR OCCUPATIONS WORK IN PROGRESS WORKER WORKER HETEROGENEITY WORKER PRODUCTIVITY WORKERS WORKING Artuc, Erhan McLaren, John Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| relation |
Policy Research Working Paper; No. 6194 |
| description |
A number of authors have argued that a
worker's occupation of employment is at least as
important as the worker's industry of employment in
determining whether the worker will be hurt or helped by
international trade. This paper investigates the role of
occupational mobility on the effects of trade shocks on wage
inequality in a dynamic, structural econometric model of
worker adjustment. Each worker in the model can switch
either industry, occupation, or both, paying a time-varying
cost to do so in a rational-expectations optimizing
environment. The authors find that the costs of switching
industry and occupation are both high, and of similar
magnitude, but in simulations they find that a worker's
industry of employment is much more important than either
the worker's occupation or skill class in determining
whether he or she is harmed by a trade shock. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Artuc, Erhan McLaren, John |
| author_facet |
Artuc, Erhan McLaren, John |
| author_sort |
Artuc, Erhan |
| title |
Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| title_short |
Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| title_full |
Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| title_fullStr |
Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| title_full_unstemmed |
Trade Policy and Wage Inequality : A Structural Analysis with Occupational and Sectoral Mobility |
| title_sort |
trade policy and wage inequality : a structural analysis with occupational and sectoral mobility |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/09/16711727/trade-policy-wage-inequality-structural-analysis-occupational-sectoral-mobility http://hdl.handle.net/10986/12033 |
| _version_ |
1764418801657446400 |