How responsive is Trade Adjustment Assistance?

Author(s):  
Sung Eun Kim ◽  
Krzysztof Pelc

Abstract How responsive is the US’ Trade Adjustment Assistance (TAA) to the labor dislocation that results from trade integration? Recent findings suggest that the world's most ambitious trade adjustment program barely responds to import shocks, and that the shortfall is made up by disability insurance and early retirement. This holds considerable implications: TAA offers a lens onto the central question of whether developed democracies can effectively redistribute the gains from international economic integration. We take a closer look at these results. Using petition-level data over a 20-year period, we find that TAA is between 1.7 and 3.3 times more responsive than current estimates suggest. Yet the news is not all good. As we show, the responsiveness of TAA has decreased considerably since the 1990s, just as developed democracies started facing increasing pushback against liberalization. This shortfall, in turn, has political consequences: areas where TAA has been least responsive were also more likely to shift toward voting for Trump in the 2016 Presidential election. Our findings speak to the considerable challenge governments face in aiding workers “left behind” by liberalization.

Author(s):  
Sung Eun Kim ◽  
Krzysztof J Pelc

Abstract Dealing with the distributional consequences of trade liberalization has become one of the key challenges facing developed democracies. Governments have created compensation programs to ease labor market adjustment, but these resources tend to be distributed highly unevenly. What accounts for the variation? Looking at the largest trade adjustment program in existence, the US’ Trade Adjustment Assistance (TAA), we argue that petitions for compensation are largely driven by legislative attitudes. When legislators express negative views of TAA, individuals in their districts become less likely to petition for, and receive, compensation. This effect is especially pronounced in Republican districts. An underprovision of TAA, in turn, renders individuals more likely to demand other forms of government support, like in-kind medical benefits. We use roll-call votes, bill sponsorships, and floor speeches to measure elite attitudes, and we proxy for the demand for trade adjustment using economic shocks from Chinese import competition. In sum, we show how the individual beliefs of political elites can be self-fulfilling.


2021 ◽  
Vol 111 ◽  
pp. 491-495
Author(s):  
Benjamin G. Hyman ◽  
Brian K. Kovak ◽  
Adam Leive ◽  
Theodore Naff

Wage insurance provides income support to displaced workers who find reemployment at a lower wage. We study the effects of the wage insurance provisions of the US Trade Adjustment Assistance (TAA) program using administrative data from the state of Virginia. The program includes an age-based eligibility cutoff, allowing us to compare earnings and employment trajectories for workers whose ages at the time of displacement make them eligible or ineligible for the program. Our findings suggest that wage insurance eligibility increases short-run employment probabilities and that wage insurance and TAA training may yield similar long-run effects on employment and earnings.


2020 ◽  
Author(s):  
Aina Gallego ◽  
Thomas Kurer ◽  
Nikolas Schöll

The nascent literature on the political consequences of technological change studies either left-behind voters or successful technology entrepreneurs ("superstars"). However, it neglects the large share of skilled workers who benefit from limited but steady economic improvements in the knowledge economy. This paper studies how workplace digitalization affects political preferences among the entire active labor force by combining individual-level panel data from the United Kingdom with industry-level data on ICT capital stocks between 1997-2017. We first demonstrate that digitalization was economically beneficial for workers with middle and high levels of education. We then show that growth in digitalization increased support for the Conservative Party, the incumbent party, and voter turnout among beneficiaries of economic change. Our results hold in an instrumental variable analysis and multiple robustness checks. While digitalization undoubtedly produces losers (along with some superstars), ordinary winners of digitalization are an important stabilizing force content with the political status quo.


2009 ◽  
Vol 2 (1) ◽  
pp. 1-27
Author(s):  
Ann Abate Michelle

This essay argues that in spite of their obvious Biblically-based subject matter, clear Christian content, and undeniable evangelical perspective, the Left Behind novels for kids are not simply religious books; they are also political ones. Co-authors Tim LaHaye and Jerry B. Jenkins may claim that their narratives are interested in sharing the good news about Jesus for the sake of the future, but they are equally concerned with offering commentary on contentious US cultural issues in the present. Given the books’ adolescent readership, they are especially preoccupied with the ongoing conservative crusade concerning school prayer. As advocates for this issue, LaHaye and Jenkins make use of a potent blend of current socio-political arguments and of past events in evangelical church history: namely, the American Sunday School Movement (ASSM). These free, open-access Sabbath schools became the model for the public education system in the United States. In drawing on this history, the Left Behind series suggests that the ASSM provides an important precedent for the presence not simply of Christianity in the nation's public school system, but of evangelical faith in particular.


Author(s):  
Rebecca Abbott ◽  
Amy Kate Bailey

As a 2016 presidential candidate, Donald J. Trump invoked racially charged rhetoric to galvanize conservative white voters who felt left behind in the “new economy.” In this article, we ask whether Trump’s ability to attract electoral support in that way was linked to local histories of racist mob violence. We use county-level data on threatened and completed lynchings of Black people to predict support for Trump in the 2016 Republican presidential primary and general election across eleven southern states. We find that fewer voters cast their ballots for Trump in counties that had suppressed a comparatively larger share of potentially lethal episodes of racist mob violence. Supplementary analyses suggest that counties’ histories of violence are also related to their electoral support for Republican presidential candidates more broadly. We posit that this correlation points to the durable effects of racist violence on local cultures and the imprint of community histories on the social environment.


Animals ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 1040
Author(s):  
Glynn Tonsor ◽  
Jayson Lusk ◽  
Shauna Tonsor

Meat products represent a significant share of US consumer food expenditures. The COVID-19 pandemic directly impacted both demand and supply of US beef and pork products for a prolonged period, resulting in a myriad of economic impacts. The complex disruptions create significant challenges in isolating and inferring consumer-demand changes from lagged secondary data. Thus, we turn to novel household-level data from a continuous consumer tracking survey, the Meat Demand Monitor, launched in February 2020, just before the US pandemic. We find diverse impacts across US households related to “hoarding” behavior and financial confidence over the course of the pandemic. Combined, these insights extend our understanding of pandemic impacts on US consumers and provide a timely example of knowledge enabled by ongoing and targeted household-level data collection and analysis.


2017 ◽  
Vol 16 (2) ◽  
pp. 92-105 ◽  
Author(s):  
Joon-heon Song

Purpose The purpose of this study is to explore the essential cause for the policy failure of Trade Adjustment Assistance (TAA) in South Korea. Design/methodology/approach To substantiate the claims made for the failure of the policy, this paper focuses on the differences in policy preferences among the government ministries and agencies involved in TAA. Findings The failure in the TAA policy, according to this study, was attributed to the conflicts and miscoordination arising from the differences in policy preferences among government ministries and agencies. To rectify this failure, the South Korean government had to revise its laws and regulations several times over a short period. Originality/value Drawing on the analytical framework of the literature on policy failure, this paper examines the causal relationships between outcomes of TAA policy and the conflicts or miscoordination among government bodies at each stage: initiatives and planning, implementation and operation of the policy.


2012 ◽  
Vol 36 (3) ◽  
pp. 279-310 ◽  
Author(s):  
Myron P. Gutmann ◽  
Sara M. Pullum-Piñón ◽  
Kristine Witkowski ◽  
Glenn D. Deane ◽  
Emily Merchant

In agricultural settings, environment shapes patterns of settlement and land use. Using the Great Plains of the United States during the period of its initial Euro-American settlement (1880–1940) as an analytic lens, this article explores whether the same environmental factors that determine settlement timing and land use—those that indicate suitability for crop-based agriculture—also shape initial family formation, resulting in fewer and smaller families in areas that are more conducive to livestock raising than to cropping. The connection between family size and agricultural land availability is now well known, but the role of the environment has not previously been explicitly tested. Descriptive analysis offers initial support for a distinctive pattern of family formation in the western Great Plains, where precipitation is too low to support intensive cropping. However, multivariate analysis using county-level data at 10-year intervals offers only partial support to the hypothesis that environmental characteristics produce these differences. Rather, this analysis has found that the region was also subject to the same long-term social and demographic changes sweeping the rest of the country during this period.


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