lecture 5 - LECTURE 5: GAINS FROM TRADE: JOBS Trade Jobs...

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2010: LECTURE 5 1 LECTURE 5: GAINS FROM TRADE: JOBS Trade Jobs are shifted between sectors. Work organization Jobs: comparative advantage gives gains from specialization. Mankiw: Chapter 3
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2010: LECTURE 5 2 Jobs are shifted from contracting sectors to expanding sectors. In US, from toys to electronics. From assembly to components:
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2010: LECTURE 5 3
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2010: LECTURE 5 4 From US autoparts to other jobs :
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2010: LECTURE 5 5
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2010: LECTURE 5 6
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2010: LECTURE 5 7 Why don’t more people support free trade: Downsizing firms blame Free Trade, Expanding firms congratulate themselves.
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2010: LECTURE 5 8
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2010: LECTURE 5 9 Focus on long-term growth effects or recurring gains: 2009 + $ 15 b 2010 + $ 15 b 2011 + $ 15 b 2012 + $ 15 b .... ................. Short-term costs born by workers who must relocate and retrain: 2005 $ 20b Recurring gains but once-off cost Policy : use some of growth to retrain laid-off workers with skills needed in expanding sector. NAFTA legislation included aid for workers who lost jobs: 117 000 signed up.
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10 JOB SPECIALIZATION Don’t have to do everything ourselves - can outsource. Each individual can specialize
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lecture 5 - LECTURE 5: GAINS FROM TRADE: JOBS Trade Jobs...

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