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Offshoring and job loss fears: An econometric analysis of individual perceptions

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  • Geishecker, Ingo
  • Riedl, Maximilian
  • Frijters, Paul

Abstract

We quantify the impact of offshoring and other globalisation measures on individual perceptions of job security. For the analysis we combine industry-level offshoring measures with micro-level data from a large German household panel survey and estimate ordinal fixed effects models. Our results indicate that offshoring to low-wage countries significantly raises job loss fears whilst offshoring to high-wage countries somewhat lowers them. Over our sample period from 1995 to 2006, offshoring to low and high-wage countries together can account for about 13% of the total increase in job loss fears. High-skilled workers are more sensitive to offshoring although their objective job loss risk is lower relative to low-skilled workers, which we argue reflects the fact that they have more to lose from unemployment.

Suggested Citation

  • Geishecker, Ingo & Riedl, Maximilian & Frijters, Paul, 2012. "Offshoring and job loss fears: An econometric analysis of individual perceptions," Labour Economics, Elsevier, vol. 19(5), pages 738-747.
  • Handle: RePEc:eee:labeco:v:19:y:2012:i:5:p:738-747
    DOI: 10.1016/j.labeco.2012.05.018
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    Cited by:

    1. Hartmut Egger & Udo Kreickemeier & Jens Wrona, 2017. "Offshoring Domestic Jobs," World Scientific Book Chapters,in: International Trade and Labor Markets Welfare, Inequality and Unemployment, chapter 2, pages 27-70 World Scientific Publishing Co. Pte. Ltd..
    2. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, April.
    3. Riedl, Maximilian, 2013. "Wage bargaining, job loss fears and offshoring," Center for European, Governance and Economic Development Research Discussion Papers 174, University of Goettingen, Department of Economics.
    4. Jan Hogrefe & Yao Yao, 2016. "Offshoring and labor income risk: an empirical investigation," Empirical Economics, Springer, vol. 50(3), pages 1045-1063, May.
    5. Fiorillo, Damiano & Lubrano Lavadera, Giuseppe & Nappo, Nunzia, 2016. "Social participation and self-rated psychological health," MPRA Paper 72879, University Library of Munich, Germany.
    6. Nils Braakmann & Alexander Vogel, 2011. "How does economic integration influence employment and wages in border regions? The case of the EU enlargement 2004 and Germany’s eastern border," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(2), pages 303-323, June.
    7. Petri Böckerman & Mika Maliranta, 2013. "Outsourcing, Occupational Restructuring, and Employee Well-Being: Is There a Silver Lining?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 878-914, October.
    8. Verena Dill & Uwe Jirjahn, 2014. "Foreign Owners and Perceived Job Insecurity in Germany: Evidence from Linked Employer-Employee Data," Research Papers in Economics 2014-09, University of Trier, Department of Economics.
    9. Jaanika Merikull & Tairi Room, "undated". "Are foreign-owned firms different ? Comparision of employment volatility and elasticity of labour demand," Bank of Estonia Working Papers wp2014-1, Bank of Estonia.
    10. Jaanika Meriküll & Tairi Rõõm, 2014. "Are Foreign-Owned Firms Different? Comparison of Employment Volatility and Elasticity of Labour Demand," UCL SSEES Economics and Business working paper series 126, UCL School of Slavonic and East European Studies (SSEES).
    11. Barbara Covarrubias Venegas & Katharina Thill & Martina Rašticová & József Poór & Zdeňka Konečná, 2016. "Competencies for Human Resource Management in Foreign-Owned Firms: Focus on Three CEE Countries and Austria," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(1), pages 70-84, November.
    12. Rõõm, Tairi & Meriküll, Jaanika, 2014. "Are foreign-owned firms different? Comparison of employment volatility and elasticity of labour demand," Working Paper Series 1704, European Central Bank.
    13. Lena Calahorrano, 2011. "Population Aging and Individual Attitudes toward Immigration: Disentangling Age, Cohort and Time Effects," SOEPpapers on Multidisciplinary Panel Data Research 389, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Barbara Dluhosch & Daniel Horgos, 2013. "Trading Up the Happiness Ladder," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 973-990, September.
    15. Eppinger, Peter S., 2017. "Service offshoring and firm employment," University of Tuebingen Working Papers in Economics and Finance 103, University of Tuebingen, Faculty of Economics and Social Sciences.

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