IMF Says Workers May Need Wage Subsidies to Cushion Trade Shocks

The world’s top global economic organizations urged nations to consider policies that would cushion the blow to workers of trade shocks, such as by compensating employees for lost wages.

It’s critical for countries to adopt policies that help workers adjust to the negative effects of trade, according to a report by the International Monetary Fund, World Bank and World Trade Organization. “With the right policies, countries can benefit from the great opportunities that trade brings and lift up those who have been left behind.”

The paper, released on April 10, was prepared for discussion at the meeting of G-20 sherpas ...