Technology, Trade Sensitivity, and Labor Displacement

This study examines the relationship between international trade, technology, and exposure to job displacement, using data on displaced workers as well as those at risk of job dislocation, for the two‐year sample periods 1986‐1987 and 1990‐1991. Workers employed in manufacturing industries with elevated import penetration or high shares of R&D personnel appear to have increased rates of job loss. However, the risk of job loss is materially reduced when a relatively high proportion of employees report working with computers. The opposing effects on displacement probabilities of R&D employment intensity and computer‐use carry over to the nonmanufacturing sector.