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Whose Job Goes Abroad? International Outsourcing and Individual Job Separations

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  • Jakob R. Munch

Abstract

This paper focuses on the adjustment costs of globalisation by studying the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1990-2003. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is estimated. Outsourcing is found to increase the unemployment risk of low-skilled workers, but the quantitative impact is modest. Outsourcing is also found to reduce the job change hazard rate for all education groups. Thus, the paper provides evidence for small adjustment costs of globalisation. Copyright © The editors of the "Scandinavian Journal of Economics" 2010 .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 112 (2010)
Issue (Month): 2 (06)
Pages: 339-360

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Handle: RePEc:bla:scandj:v:112:y:2010:i:2:p:339-360

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Web: http://www.blackwellpublishing.com/subs.asp?ref=0347-0520

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Cited by:
  1. Gerards, Ruud, 2012. "Unemployment and employability: how firms can help," Open Access publications from Maastricht University urn:nbn:nl:ui:27-29158, Maastricht University.
  2. Lo Turco, A. & Maggioni, D. & Picchio, M., 2012. "Offshoring and Job Stability: Evidence from Italian Manufacturing," Discussion Paper 2012-034, Tilburg University, Center for Economic Research.

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