Trade‐Induced Unemployment: How Much Do We Care?

B-Tier
Journal: Review of International Economics
Year: 2010
Volume: 18
Issue: 5
Pages: 972-989

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is a common perception that a government, especially in the face of elections, is particularly sensitive to the presence of trade‐induced unemployment. In this paper, I ask: how much weight does the incumbent politician actually attach to unemployment resulting from trade? To answer, I build a model that captures government's sympathy to trade‐affected workers and allows me to decompose the channels through which trade‐induced unemployment affects the level of sectoral protection chosen by a politically‐driven incumbent official. I provide empirical evidence that the US government is very sensitive to the presence and the magnitude of trade‐induced unemployment. Specifically, I estimate the weight that the office holder attaches to the welfare of trade‐affected workers to be positive, significant, and four times larger than the weight on the welfare of those who are not affected by trade.

Technical Details

RePEc Handle
repec:bla:reviec:v:18:y:2010:i:5:p:972-989
Journal Field
International
Author Count
1
Added to Database
2026-01-29