We estimate the impact of a negative trade shock on labour market outcomes and educational choices of workers. We exploit the Canadian lumber exports crisis beginning in 2007 in a quasi-experimental design. We find that the employment probability of forestry industry workers decreased by 4.1...

The Softwood Lumber dispute between the U.S. and Canada is one of the longest and most expensive trade disputes in history. However, the Softwood Lumber dispute has been, if not misunderstood, at least underappreciated. To date, the dispute has attracted attention because of the substantial...