data from Brazil, Dix-Carneiro (2014) shows that the slow reallocation of workers and capital toward export-oriented industries leads to substantially lower gains from trade compared to traditional frictionless models. He estimates 11 to 26 percent lower gains from trade compared to a situation where reallocation occurs immediately. In addition, he estimates that adjustment costs are heterogeneous across the population. In particular, older, less educated, and female workers face substantially higher barriers to mobility across sectors. These workers in import-competing sectors experience substantial losses following liberalization, so governments willing to compensate the losers from trade should pay particular attention to workers with these characteristics. Dix-Carneiro and Kovak (2017) investigate how Brazilian region-specic labor market outcomes have responded to local shocks induced by the tari cuts, tracking the evolution of these eects over time. They show that regions facing larger negative shocks induced by liberalization experienced declines in formal sector employment relative to regions facing smaller shocks. These eects gradually increased following the beginning of liberalization and only stabilized fteen years afterward. These results indicate that formal sector employment adjustment in response to trade liberalization was large but slow. They also document that wages in harder-hit locations steadily declined for years and never recovered. The slow reallocation of capital led to a steady amplication of the initial local labor demand shock, making workers in harder-hit regions even less productive over time compared to those in more favorably aected regions. Agglomeration economies also amplify the labor market eects of trade liberalization. As rms in harder-hit regions leave the market, the productivity of remaining local rms gradually declines, further reducing local wage and employment growth. This evidence focused on how aggregate formal sector and regional-level labor market outcomes responded to liberalization. In another study, DixCarneiro and Kovak (2019) analyzed how individual labor market trajectories responded to the trade-induced labor demand shocks. Following individual workers over time using the Relação Anual de Informações Sociais (RAIS) data, they show that tradable sector workers initially employed in harder-hit locations were more likely to switch to nontradable sectors in response to liberalization. However, this response did not oset the large losses in employment in tradable sectors. Finally, they document that the formal employment trajectories of workers initially employed in nontradable sectors were aected almost as much as those of tradable sector workers, indicating the presence of important spillovers from tradable to nontradable sectors locally. Dix-Carneiro and Kovak (2019) also investigate how the structure of local labor markets responded to the trade-induced local shocks over longer time periods. In the medium run (1991 to 2000), nonemployment and informal employment increased in harder-hit locations relative to the national average. Yet in the long run (1991 to 2010), nonemployment did not respond to local trade shocks, but informal employment strongly 24