Trade Shocks and Labor Adjustment: A Structural Empirical Approach
利用美国当前人口调查数据估计工人在行业间流动的成本均值和方差，发现成本高导致经济调整缓慢、工资波动大，但进口竞争行业工人仍可能从关税取消中获益。
The welfare effects of trade shocks turn on the nature and magnitude of the costs workers face in moving between sectors. Using an Euler-type equilibrium condition derived from a rational expectations model of dynamic labor adjustment, we estimate the mean and variance of workers' switching costs from the US CPS. We estimate high values of both parameters, implying slow adjustment of the economy and sharp movements in wages in response to trade shocks. However, import-competing workers can still benefit from tariff removal; liberalization lowers their wages in the short and long run but raises their option value.