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Global Outsourcing of Human Capital and the Incidence of Unemployment in the United States

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  • Ogloblin, C

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Abstract

The study is the first to examine empirically the impact of the new wave of global job outsourcing on skill-specific patterns of involuntary unemployment in the U.S. using the latest individual-level data. The estimates from a probit model show that, so far, global human-capital outsourcing has not shifted the risk of unemployment from lower-skilled to higher-skilled American workers. Overall, the probability of involuntary unemployment is negatively related with the worker’s level of education. For the outsourceable occupations, however, high-skilled workers are currently at a greater risk of unemployment than those with lower skills.

Suggested Citation

  • Ogloblin, C, 2004. "Global Outsourcing of Human Capital and the Incidence of Unemployment in the United States," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(3).
  • Handle: RePEc:eaa:aeinde:v:4:y:2004:i:1_17
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    File URL: http://www.usc.es/economet/reviews/aeid431.pdf
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    1. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-245, May.
    2. Ingo Geishecker & Holger Görg, 2003. "Winners and Losers: Fragmentation, Trade and Wages Revisited," Discussion Papers of DIW Berlin 385, DIW Berlin, German Institute for Economic Research.
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