8. In the section Gains and Adjustment Costs for the United States under NAFTA, we calculated the...

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8. In the section “Gains and Adjustment Costs for the United States under NAFTA,” we calculated the lost wages of workers displaced because of NAFTA. Prior experience in the manufacturing sector shows that about two-thirds of these workers obtain new jobs within three years. One way to think about that reemployment process is that one-third of workers find jobs in the first year, and another one-third of remaining unemployed workers find a job each subsequent year. Using this approach, in the table that follows, we show that one-third of workers get a job in the first year (column 2), leaving two-thirds of workers unemployed (column 4). In the second year, another ( )

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International Economics

ISBN: 9781429231183

2nd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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