Trade and Jobs

The Economist (might be gated) has a nice discussion of trade's impact on workers in the US and EU. They highlight an important difference in how trade shapes employment in the two economies: "In America, where labour markets are flexible, the impact (of trade) is felt on wages more than employment. In Europe fewer trade-displaced workers find new jobs quickly, but those who do take less of a pay cut. One study suggests that, during the 1980s-90s, 65% of manufacturing workers in America who lost their jobs to freer trade were employed two years later, but most took a pay cut. A quarter suffered pay losses of more than 30%. In Europe during the 1990s, in contrast, less than 60% of workers in the same situation had found a new job, but only 7% saw their pay fall more than 30%."

Any one who took POLI 401 last fall care to explain why?