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April 1995

Trade and displacement in manufacturing

John T. Addison, Douglas A. Fox, Christopher J. Ruhm

Trade sensitivity is linked to job loss, but does not affect the duration of unemployment or the probability of the loss of health insurance; it is only weakly associated with subsequent earnings. This article examines the relationship between the trade sensitivity of a worker's industry and the probabilities and consequences of job displacement, using data from a supplement to the Current Population Survey.

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