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International Outsourcing and Individual Job Separations


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  • Jakob Roland Munch

    (Department of Economics, University of Copenhagen)


This paper studies the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1992-2001. Estimation of a single risk duration model, where no distinction is made between different types of transitions out of the job, shows that outsourcing has a clear significant positive effect on the job separation rate, but the effect corresponds to a limited number of lost jobs. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is also estimated. Outsourcing is found to increase the unemployment risk of workers and in particular low-skilled workers, but again the quantitative impact is not dramatic. Outsourcing also increases the job change hazard rate and mostly so for high-skilled workers.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 05-11.

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Length: 15 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:kud:kuiedp:0511

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Keywords: international outsourcing; job separations; competing risks duration model;

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