You are needed but not your skills: Challenges to manufacturing workers in the wake of globalisation

a column by Hâle Utar for VOX: CEPR’s Policy Portal

The impact of trade shocks on labour market shifts is usually studied in the context of re-training and social welfare frictions.

Using evidence from Denmark, this column shows how workers can experience long-run reductions in earnings no matter how easy it is to change sector. A sudden and obligatory shift toward a new sector may, by its nature, generate some worker dissatisfaction.

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