Industry Mix, Local Labor Markets, and the Incidence of Trade Shocks
利用德国行政数据和经济距离指标，研究技能可转移性和地方行业结构如何影响受贸易冲击工人的调整成本，发现制造业工人中，居住在吸收能力最差地区的人因进口竞争导致的收入损失更大。
We analyze how skill transferability and the local industry mix affect the adjustment costs of workers hit by a trade shock. Using German administrative data and novel measures of economic distance, we construct an index of labor market absorptiveness that captures the degree to which workers from a particular industry are able to reallocate into other jobs. Among manufacturing workers, we find that the earnings loss associated with increased import exposure is much higher for those who live in the least absorptive regions. We conclude that the local industry composition plays an important role in the adjustment processes of workers.