Short run labor adjustment costs 5 of manufacturing

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Unformatted text preview: ected by tariff cuts (1.9%/ year) –  6% for manufacturing overall (growth of 0.7%/year) –  The difference of 1.2%/year is an es/mate of how free trade with the U.S. affected the Canadian industries over and above the impact on other industries. •  Short run: labor adjustment costs –  5% of manufacturing employment experienced job loss –  NO long run job losses due to NAFTA. Empirical Evidence: NAFTA (1994) Gains and Costs for the U.S. •  Expansion of Variety:  ­  Look at imports from Mexico in 1990 and 2001.  ­  Count the number of different types of products Mexico sells to the U.S. compared to the total th...
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This document was uploaded on 01/18/2014.

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