WORKER ADJUSTMENT TO LIBERALIZED TRADE - COSTS AND ASSISTANCE POLICIES

Abstract

The issues which confront governments concerning the choice between trade or protection are related to three distinct yet inter- connected policy problems, namely: international trade policy, national industrial development policy, and political platform policy. The theoretical economics literature as well as most policy analysis tends to approach each of these problems in a slightly different manner. As a result policies which might provide partial solutions to all three problems tend to be overlooked or dismissed because they do not provide a complete answer to any single one. Worker adjustment assistance policies are of this type. The purposes of this paper are to indicate the potential usefulness of properly designed worker adjustment policies, to define the measurement and empirical issues which much be addressed in designing specific programmes, and to point out critical considerations regarding their implementation.liberalized trade, worker adjustment, assistance policies