DOES TRADE ADJUSTMENT ASSISTANCE MAKE A DIFFERENCE?

The U.S. Trade Adjustment Assistance (TAA) program provides workers who have lost their jobs due to increased trade with income support and training, job search, and relocation benefits. This paper uses data collected by the Department of Labor on TAA beneficiaries to provide the most recent econome...

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Published in:Contemporary Economic Policy Vol. 30; no. 1; pp. 43 - 60
Main Authors: REYNOLDS, KARA M., PALATUCCI, JOHN S.
Format: Article
Published: Wiley-Blackwell Jan2012
Subjects:
Online Access:View this record in EBSCOhost
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          REYNOLDS, KARA M.
          PALATUCCI, JOHN S.
        affil:
          Reynolds: Association Professor, Department of Economics, American University, Washington, DC 20016. Phone (202) 885-3768, Fax (202) 885-3790, E-mail
          Palatucci: Student, Department of Economics, American University, Washington, DC 20016. Phone (202) 885-3768, Fax (202) 885-3790.
      su:
        United States
        United States. Dept. of Labor
        Job hunting
        Employment
        Trade adjustment assistance
        Beneficiaries
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          Job hunting
          Employment
          United States
          United States. Dept. of Labor
          Trade adjustment assistance
          Beneficiaries
      ab: The U.S. Trade Adjustment Assistance (TAA) program provides workers who have lost their jobs due to increased trade with income support and training, job search, and relocation benefits. This paper uses data collected by the Department of Labor on TAA beneficiaries to provide the most recent econometric evaluation of the effectiveness of the TAA program. Summary statistics suggest that the TAA program successfully targets displaced workers who have a greater difficulty finding new employment. However, using propensity score matching techniques we find that while the required training component of the program improves the employment outcomes of beneficiaries, on average the TAA program has no discernible impact on the employment outcomes of the participants. ( JEL F16)
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