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Offshoring and job loss fears: An econometric analysis of individual perceptions

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  • Geishecker, Ingo
  • Riedl, Maximilian
  • Frijters, Paul

Abstract

We quantify the impact of offshoring and other globalisation measures on individual perceptions of job security. For the analysis we combine industry-level offshoring measures with micro-level data from a large German household panel survey and estimate ordinal fixed effects models. Our results indicate that offshoring to low-wage countries significantly raises job loss fears whilst offshoring to high-wage countries somewhat lowers them. Over our sample period from 1995 to 2006, offshoring to low and high-wage countries together can account for about 13% of the total increase in job loss fears. High-skilled workers are more sensitive to offshoring although their objective job loss risk is lower relative to low-skilled workers, which we argue reflects the fact that they have more to lose from unemployment.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 5 ()
Pages: 738-747

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Handle: RePEc:eee:labeco:v:19:y:2012:i:5:p:738-747

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Job loss fears; Job security perceptions; Outsourcing; Offshoring;

References

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Citations

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Cited by:
  1. Lena Calahorrano, 2011. "Population Aging and Individual Attitudes toward Immigration: Disentangling Age, Cohort and Time Effects," SOEPpapers on Multidisciplinary Panel Data Research 389, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Jaanika Meriküll & Tairi Rõõm, . "Are foreign-owned firms different ? Comparision of employment volatility and elasticity of labour demand," Bank of Estonia Working Papers wp2014-1, Bank of Estonia.
  3. Böckerman, Petri & Maliranta, Mika, 2012. "Outsourcing, occupational restructuring, and employee well-being: Is there a silver lining?," Discussion Papers 1271, The Research Institute of the Finnish Economy.
  4. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics 2014-09, University of Trier, Department of Economics.
  5. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2013. "Non-Standard 'Contingent' Employment and Job Satisfaction: A Panel Data Analysis," Melbourne Institute Working Paper Series wp2013n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. Nils Braakmann & Alexander Vogel, 2011. "How does economic integration influence employment and wages in border regions? The case of the EU enlargement 2004 and Germany’s eastern border," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 303-323, June.
  7. Riedl, Maximilian, 2013. "Wage bargaining, job loss fears and offshoring," Center for European, Governance and Economic Development Research Discussion Papers 174, University of Goettingen, Department of Economics.

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