Once dislocated workers obtain a new job, they suffer significant wage reductions. About two thirds of dislocated workers have lower wages in the new job and one quarter of displaced workers from manufacturing who find a new full-time job suffer earning losses of 30% or more. The reason is that many workers find jobs in services sector where salaries are lower. Ebenstein et al. (2009) find that displaced workers from manufacturing who find a job in the services sector suffer a wage decline of between 6 and 22%. They conclude that a 1 percentage point increase in occupation-specific import competition is associated with a 0.25 percentage point decline in real wages.