Worker adjustment to liberalized trade : costs and assistance policies
GLENDAY, G. | JENKINS, G. | EVANS, J.
This work in progress report is part of an inquiry being undertaken by the World Bank in conjunction with scholars from twelve industrial countries into the penetration of the markets of industrial countries by exports of manufactures from developing countries. The project seeks to establish the shares of industrial country markets held by the developing countries, changes in such shares in the 1970s, and why they vary among industry groups and countries. The aim is to assist developing and industrial countries to improve their policies through a better understanding of trade patterns and protectionist pressures. This paper analyzes the potential usefulness of properly designed worker adjustment policies, defines the measurement and empirical issues which must be addressed in designing specific programs, and points out the critical considerations for their implementation. Estimates of the government financial assistance required are provided for one region in Canada to illustrate the magnitudes involved. The paper concludes that economic welfare can be improved at home and abroad by appropriate worker adjustment programs.
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