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International Outsourcing, the Nature of Tasks, and Occupational Stability – Empirical Evidence for Germany

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  • Baumgarten, Daniel

Abstract

Using a large administrative data set of individual employment histories in Germany, this paper studies how international outsourcing affects the individual risk of leaving the occupation. Moreover, a rich data set on tasks performed in occupations is used to better characterize the sources of worker vulnerability. While international service outsourcing is associated with an increase in overall stability, the impact of international material outsourcing is slightly negative. These effects, however, are not uniform but depend on the nature of tasks performed in the occupation. Higher intensities of non-routine and interactive tasks are associated with a more beneficial (or less adverse) impact of international outsourcing on occupational stability.

Suggested Citation

  • Baumgarten, Daniel, 2009. "International Outsourcing, the Nature of Tasks, and Occupational Stability – Empirical Evidence for Germany," Ruhr Economic Papers 108, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:108
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    Cited by:

    1. Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2013. "Offshoring, tasks, and the skill-wage pattern," European Economic Review, Elsevier, vol. 61(C), pages 132-152.
    2. Lo Turco, Alessia & Maggioni, Daniela & Picchio, Matteo, 2013. "Offshoring and job stability: Evidence from Italian manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 26(C), pages 27-46.
    3. Ljubica Nedelkoska & Simon Wiederhold, 2010. "Technology, outsourcing, and the demand for heterogeneous labor: Exploring the industry dimension," Jena Economics Research Papers 2010-052, Friedrich-Schiller-University Jena.
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    More about this item

    Keywords

    Occupational stability; international outsourcing; duration analysis;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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