BIS Review 41/2007  3  between higher-skilled and lower-skilled workers and thus contribute to income inequality (Bernanke, 2007). The effects of trade on employment must also be put in the context of the remarkable dynamism of the U.S. labor market.
The amount of "churn" in the labor market – the number of jobs created and destroyed – is enormous and reflects the continuous entry, exit, and resizing of firms in our everchanging economy.