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Automation, offshoring, and the role of public policies

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  • Schmidpeter, Bernhard
  • Winter-Ebmer, Rudolf

Abstract

We provide comprehensive evidence on the consequences of automation and offshoreability on the career of unemployed workers and the role of public policies. Using almost two decades of administrative data for Austria, we find that risk of automation is reducing the job finding probability; a problem which has increased over the past years. We show that this development is associated with increasing re-employment wages and job stability. Taken together, our findings imply a trade off between quantity and quality in these jobs. Provided training is beneficial in counteracting the negative impact of automation on the job finding rate but we find mixed effects in terms of post-unemployment wages.

Suggested Citation

  • Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2019. "Automation, offshoring, and the role of public policies," Ruhr Economic Papers 835, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:835
    DOI: 10.4419/86788968
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    References listed on IDEAS

    as
    1. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    2. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
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    More about this item

    Keywords

    labor market polarization; technological change; offshoring; active labor market programs; unemployment;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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