Occupation Switching Behavior and the Wage Impact of Trade-Related Displacement
نویسندگان
چکیده
This paper investigates the cross-occupation effect of offshorability on wage rates by examining the occupation switching behavior of workers previously employed in highly offshorable occupations. Instead of looking at the labor market for occupations that are traditionally vulnerable to import competition, we study the destination occupations for the workers displaced from import-competing sectors. We observe the pattern of occupation switching using the data on participants of the Trade Adjustment Assistance (TAA) program of the U.S. Department of Labor. Using the NLSY dataset, we find that inflows of workers who were previously employed in highly offshorable occupations exerts significant downward pressure on wages for workers who are already employed in the receiving occupations. JEL classification: F13, F16
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