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Gordon Hanson's Recent Study on China Joining WTO and its Impact on Blue-collar Jobs Referenced

The Left-Behinds

11/21/2011
Michael Hirsh, National Journal

Today, Braddock is a black hole of apathy where the gravitational pull of despair is often too powerful to resist. Unemployment is chronically in the double digits, not so much because of displaced steelworkers—most of those jobs disappeared in the 1980s—but because of their children and grandchildren. These are the second and third generations of a lost tribe.

"We have manufacturing companies who say to us, 'I don't want to look at those people. They're not used to showing up and coming to work anymore,' " says Stefani Pashman, head of the Three Rivers Workforce Investment Board in Pittsburgh. Unemployment counselors talk about the difficulties of teaching "soft skills"—such as simply showing up on time for an interview and wearing something nicer than a stained T-shirt. "The perception of these people as workers," says David Coplan, director of the Mon Valley Providers Council, "is that they're damaged goods."

It's easy to write off the Mon Valley left-behinds as an old story limited to the specific woes of the steel industry. But in many ways, the people here are part of a much broader trend toward long-term unemployment in America. As in Braddock, and now a slew of communities laid low by the housing bubble and bust, the phenomenon can feed on itself and create a vicious cycle of disappearing jobs, declining incomes, higher foreclosures, and more layoffs.

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Gordon Hanson is director of the Center on Emerging and Pacific Economies and professor of economics at UC San Diego, where he holds faculty positions in the School of International Relations and Pacific Studies and the Department of Economics.  He is a research associate at the National Bureau of Economic Research, a member of the Council on Foreign Relations, and a co-editor of the Review of Economics and Statistics. Prior to joining UCSD in 2001, he was on the economics faculty at the University of Michigan (1998-2001) and at the University of Texas (1992-1998).