The paper analyzes how international outsourcing affected individual employment security. The analysis is carried out at the micro-level, combining monthly spell data from household panel data and industry-level outsourcing measures. By utilizing micro-level data, problems such as aggregation and potential endogeneity bias, as b well as crude skill approximations that regularly hamper industry level displacement studies, can be reduced considerably. The main finding is that international outsourcing significantly lowers individual employment security. Interestingly, the effect does, however, not differ between high-, medium-, and low-skilled workers but only varies with job duration. --
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Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number
2006/17.
Find related papers by JEL classification: F16 - International Economics - - Trade - - - Trade and Labor Market Interactions F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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