TRADE SHOCKS AND HIGHER-ORDER EARNINGS RISK IN LOCAL LABOR MARKETS

• 成果类型: Article
• 署名作者: Martinez, Tomas R.; Mello, Ursula
• 署名单位: Insper; Consejo Superior de Investigaciones Cientificas (CSIC); CSIC - Institut d'Analisi Economica (IAE); IZA Institute Labor Economics
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12703
• 发表日期: 2024
• 页码: 1717-1746
• 关键词: Income risk; INTERNATIONAL-TRADE; consumption; DYNAMICS; adjustment; LIBERALIZATION; INEQUALITY

摘要

This article investigates the relationship between international trade and asymmetrical labor income risk. Using the case study of Brazil, we inspect how an increase in import penetration following the China shock impacted the distribution of idiosyncratic earnings changes across the country's local labor markets. We find that an increase in import penetration leads to a more dispersed and negatively skewed distribution. These effects can be explained by an increase in the volatility of hours worked following job and industry transitions, particularly from involuntary job separations.