Full Citation

Title: The Local Incidence of Trade Shocks

Citation Type: Miscellaneous

Publication Year: 2014

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Abstract: The welfare implications of trade integration across areas of a country rely on local real wages, typically unmeasured in ex-post analyses and unavailable in counter-factual exercises. I develop and estimate a general equilibrium frame-work where local labor markets interact via commuting ties and overlaps in sectoral specialization. Changes in real wages are poorly predicted by standard measures of exposure to trade because, first, the price of local services co-moves with local workplace wages, and, second, residents adjust commuting patterns chasing higher wages. While more exposure to trade in comparative disadvantages sector tends to lower nominal wages, all real wages grow.

Url: http://lindert.econ.ucdavis.edu/seminars/papers/Monte1015.pdf

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Authors: Monte, Ferinando

Publisher: Johns Hopkins University

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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