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Blue Collar Workers

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layoffs and displacement. Many blue-collar workers, like David Quinn, were disproportionally affected by globalization because their jobs could be easily automated. When Quinn’s company shifted production outside of the United States, he felt his job “was stolen” by Mexicans. Furthermore, manufacturing plants were often the core of community life in many small towns. Not only does outsourcing and plant closures threatened a worker’s livelihood, it also jeopardized their “identity” because they often measured their “self-worth” by their employment and ability to provide for their families. As one unemployed worker mentioned, “liberalizing world trade should not harden the lives of ordinary working people.” Therefore, globalization creates …show more content…

This is similar to the “federal-state structure” for unemployment insurance (UI), but funding for TAA is dependent on the Congressional budget as opposed to the trust fund system. Once a worker is deemed eligible for TAA, they start receiving Trade Readjustment Allowances (TRA), which is similar to UI benefits except with a three-tier system. At the lowest level, Basic TRA is “payable for up to 52 weeks” but deducts “any time the worker receives state UI benefits.” If the individual exhausts basic TRA, they can collect Additional TRA for an additional 52 weeks if they are in an approved job training process. At the highest tier is Remedial TRA, which would grant unemployed individuals another 26 weeks if they “require additional income support to complete approved …show more content…

In an evaluative study conducted in 2001, TAA trainees earned “12% less than UI exhaustees” while TAA non-trainees earned “5% less than otherwise identical UI exhaustees.” Similarly, a report published in 2012, the Department of Labor found that the average quarterly earnings were about $3,000 to $4,000 lower for TAA participants compared to the average unemployed individual. Likewise, 1 year after the initial displacement, fewer than 25% of TAA recipients were employed as opposed to 70% of comparison groups. The gap continues throughout the end of the 4-year study as only 79% of workers under TAA have held at least 1 job compared to 87% of other unemployed

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