International Trade and Labor Reallocation: Misclassification Errors, Mobility, and Switching Costs

Name: International Trade and Labor Reallocation: Misclassification Errors, Mobility, and Switching Costs
Published: 2025-01-14
License: This work is licensed under an Other license created by the PSID, namely that you agree not to redistribute data or other materials without the written agreement of ICPSR, unless: 1. You serve as the OFFICIAL or DESIGNATED REPRESENTATIVE at an ICPSR MEMBER INSTITUTION and are assisting AUTHORIZED USERS with obtaining data, or 2. You are collaborating with other AUTHORIZED USERS to analyze the data for research or instructional purposes.

Principal Investigator(s): View help for Principal Investigator(s) Maximiliano Dvorkin, Federal Reserve Bank of St. Louis

Version: View help for Version V1

Name	File Type	Size	Last Modified
PSID_data			01/14/2025 11:58:AM

Project Citation:

Dvorkin, Maximiliano. International Trade and Labor Reallocation: Misclassification Errors, Mobility, and Switching Costs. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-01-14. https://doi.org/10.3886/E215481V1

Project Description

Summary:

PSID data used in

"International Trade and Labor Reallocation: Misclassification Errors, Mobility, and Switching Costs", by Maximiliano Dvorkin

Forthcoming at the Review of Economic and Statistics/

Abstract:

International trade has rapidly increased in the past decades, affecting production and labor demand across various economic sectors. The impact of trade on employment and welfare relies heavily on data about worker reallocation, which often contains coding errors. This study demonstrates that such errors bias the estimated effects of trade and structural parameters in standard models. An econometric framework is developed to estimate misclassification probabilities, correct mobility matrices, and structural parameters. The findings reveal that the true effects of trade shocks differ significantly from those estimated using uncorrected data, highlighting the importance of addressing coding errors in economic analyses.

Scope of Project

Subject Terms: international trade; labor markets; classification errors; mobility; structural estimation

Geographic Coverage: United States

Time Period(s): 1972 – 1997

Universe: Males, 25-64. Employed

Data Type(s): census/enumeration data

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Published Versions

V1 [2025-01-14]

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