At a Glance
U.S. Department of Labor, Employment and Training Administration
Project Time Frame:
Trade Adjustment Assistance Program: Helping Workers Affected by Globalization
Globalization has intensified competition throughout the U.S. economy. While the net benefits of foreign trade are large—everyone benefits from the availability of lower-priced goods—there is a downside. Some U.S. workers experience unemployment and earnings losses resulting from plant closings and jobs being sent overseas.
The Trade Adjustment Assistance (TAA) program provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports. Workers may be eligible for training, job search and relocation allowances, income support, and other reemployment services.
Social Policy Research and Mathematica evaluated the TAA program for the U.S. Department of Labor, Employment and Training Administration. This nine-year study addressed a full range of questions regarding the operation and impacts of the program after the passage of the Trade Act of 2002 and included the following components:
The impact study was based on a comparison group design, in which samples of TAA participants were matched to unemployment insurance claimants not eligible for TAA (but otherwise similar) using propensity scoring methods. The samples were selected using administrative records data from 26 randomly selected states. The administrative records sample contained 36,000 workers in the TAA group and 72,000 workers in the comparison group. Telephone surveys with a random subset of the sample occurred at baseline and 25 months.
Final study results were published in a series of occasional papers.
"Understanding the Employment Outcomes of Trainees in the Trade Adjustment Assistance (TAA) Program Under the 2002 Amendments" (December 2012)