AIRD Senior Economist Lynn Salinger and colleagues at Nathan Associates have worked with USAID to strengthen its capacity to support labor market transitions in partner countries undergoing trade liberalization. This activity has involved providing analytical foundations, broadening knowledge of assistance practices, and developing partnerships with outside organizations to better inform USAID practices in this field. (2005 - 2006)

The final report to USAID, "Developing Country Labor Market Adjustments to Trade Reform," published by Nathan Associates in June 2006, explores how labor markets react to initial trade shocks, with both short-term shifts in the demand for labor and longer term adjustment on both the demand and supply sides as businesses restructure and workers learn new skills to pursue new job opportunities.

The report is available for downloading from USAID.