Dix-Carneiro and Kovak Trade Reform and Regional Dynamics Tolipan 1985). We utilize RAIS data spanning the period from 1986 to 2010. The Census is a traditional household survey covering the entire population, including informally employed and non-employed workers. We use Census data from 1970-2010.

Originally, RAIS was created as an operational tool for the Brazilian government to i) monitor the entry of foreign workers into the labor market; ii) oversee the records of the FGTS program (a national benefits program consisting of employers’ contributions to each of its employees); iii) provide information for administering several government benefits programs such as unemployment insurance; and iv) generate statistics regarding the formal labor market. Today it is the main tool used by the government to enable the payment of the ” _abono salarial_ ” to eligible workers. This is a government program that pays one additional minimum wage at the end of the year to workers whose average monthly wage was not greater than two times the minimum wage, and whose job information was correctly declared in RAIS, among other minor requirements. Thus, workers have an incentive to ensure that their employer is filing the required information. Moreover, firms are required to file, and face fines until they do so. RAIS includes all formally employed workers, meaning those with a signed work card, providing them access to all of the benefits and labor protections afforded them by the legal employment system. It omits those without signed work cards, including interns, the self-employed, elected officials, domestic workers, and other minor employment categories. These data have recently been employed by Menezes-Filho and Muendler (2011), Helpman, Itskhoki, Muendler and Redding (2014), Lopes de Melo (2013), Krishna et al. (2014), and Dix-Carneiro (2014), though these papers utilize a shorter panel.

The data consist of job records identified by both a worker ID number (PIS) and an establishment registration number (CNPJ). These identifiers are unique and do not change over time, allowing us to track workers over time and across establishments. Establishment-level information includes geographic location (municipality), industry (IBGE subsector<sup>9</sup> ), and worker-level information includes gender, age, education (9 categories), December earnings, average monthly earnings, tenure, occupation, month of accession into the job (if accession occurred during the current year) and month of separation (if any). Throughout the analysis, we limit our sample to include workingage individuals, aged 18-64, and unless otherwise noted, focus on labor market outcomes reported in December of each year.<sup>10</sup> These data have various advantages relative to previous work on the effects of trade on local labor markets. First, relative to Kovak (2013) and Autor et al. (2013), we can analyze the dynamics of adjustment to the trade liberalization shock, as RAIS data are available every year and because RAIS is representative at fine geographic levels by including the universe of formally employed

> 9The IBGE subsector classification includes 12 manufacturing industries, 2 primary industries, 11 nontradable industries, and 1 other/ignored.

> 10In the regional analysis, we also omit individuals working in public administration and those reporting other/ignored sectors. We impose additional age restrictions and other sample restrictions in the individual-level analysis, described in Section 6.

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