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International Trade and the Labor Market Experience of Displaced Workers

Using data from the Displaced Workers Survey and the National Bureau of Economic Research Trade and Immigration Dataset, the author of this study finds that among manufacturing workers displaced in 1979–83, the average duration of joblessness varied directly with the rise in their industry's import share since 1972–74. This relationship appears to be due in large part to the fact that the work force in industries with rising import shares tends to have demographic characteristics associated with labor market adjustment difficulties, such as higher proportions of women and blue-collar workers than are found in other industries.