Congressional Testimony on the Effectiveness of Trade Adjustment Assistance and Suggestions for Improving the Program

Authors

Louis S. Jacobson, W.E. Upjohn Institute for Employment ResearchFollow

Series

Upjohn Institute Working Paper No. 92-12

DOI

10.17848/wp92-12

Issue Date

August 1, 1991

Abstract

In this testimony, I will sketch key findings from research that I conducted with others, bearing on the justification and effectiveness of trade adjustment assistance. Most economists agree that protecting workers from the negative consequences of the North American Free Trade Agreement is appropriate, since we believe that a measure is unambiguously good only when some benefit, but no one is hurt. Thus, my central policy conclusion is that the combination of UI and TAA does a good job in protecting the majority of trade impacted workers. But available funds would be better spent by helping dislocated workers find jobs, particularly by adequately funding the employment service.

Subject Areas

LABOR MARKET ISSUES; Job security and unemployment dynamics; Dislocated workers; INTERNATIONAL ISSUES; Globalization; Trade issues