Trade Liberalization Intra-Industry Reallocation of Labor and Trade Adjustment Assistance

l. Introduction

ll. Model Setup
1. Basic Assumptions
2. Demand
3. Production
4. Cutoff Levels of Prlductivity and Worker Quality

lll. Effects of Trade Openness on Unemployment: Second Period
1. New Cut-Off Levels of Worker Quality
2. Comparison of Worker Quality Between Groups
3. Structural and Frictional Unemployment

lV. Role of TAA in the Process of Intra-redistribution of Production Factors
1. The Need for a TAA Job Training Program Within a Sector
2. Sectoral Characteristics

V. Conclusion

References