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The impact of international outsourcing on individual employment security: a micro level analysis

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Author Info
Geishecker, Ingo
Abstract

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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Publisher Info
Paper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2006/17.

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Date of creation: 2006
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Handle: RePEc:zbw:fubsbe:200617

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Related research
Keywords: outsourcing; displacement; duration analysis; mass points;

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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

Cited by:
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  1. Buch, Claudia M. & Lipponer, Alexander, 2007. "Volatile multinationals? Evidence from the labor demand of German firms," Discussion Paper Series 1: Economic Studies 2007,22, Deutsche Bundesbank, Research Centre. [Downloadable!]
  2. Sascha O. Becker & Marc Andreas Muendler, 2006. "The Effect of FDI on Job Separation," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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