Occupational Diversification, Offshoring and Labor Market Volatility
AbstractAre occupations that are well diversified across sectors less volatile, and less susceptible to external shocks? Most external shocks (e.g. manufacturing offshoring, oil shocks) impact the labor market along sectoral lines, i.e. they impact product and output markets; consequently, they affect employment in various occupations. Some shocks, however, like services offshoring, affect horizontals or occupations. We find that an occupation spread across many industrial sectors is less volatile in terms of numbers employed and the average wage. A dummy variable for offshoreable occupations does not affect the results; however, geographically clustered occupations seem more “at-risk,” after accounting for sectoral diversification.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3168.
Date of creation: 01 Oct 2006
Date of revision:
offshoring; external shocks; labor market volatility; occupations; diversification; geographic clusters;
Find related papers by JEL classification:
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
- F2 - International Economics - - International Factor Movements and International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-19 (All new papers)
- NEP-BEC-2007-05-19 (Business Economics)
- NEP-LAB-2007-05-19 (Labour Economics)
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