This paper analyzes the effectiveness of wage insurance for displaced workers in the U.S. Trade Adjustment Assistance (TAA) program, specifically focusing on its Reemployment Trade Adjustment Assistance (RTAA) component. The study finds that eligibility for wage insurance significantly increases short-run employment probabilities and leads to higher long-run cumulative earnings for displaced workers.
Keywords:
Trade Adjustment Assistance (TAA)
Wage insurance
Displaced workers
Employment
Earnings