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When Offshoring Threatens Jobs: Lifelong Education and Occupation Choice

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  • Daisuke Adachi
  • Lars Skipper

Abstract

Manufacturing job offshoring has displaced low-skilled workers lacking transition skills. Using Danish adult education and employer-employee data, we study how vocational training influences occupational choice and mitigates labor market shocks. Manufacturing workers trained in business services (BS) show a higher probability of transitioning to BS occupations via dynamic difference-in-difference analysis. We then propose and estimate a life-cycle model of training and occupation. Our model reveals that program take-up elasticity is lower than occupation choice elasticity, indicating insensitivity to program monetary value. Counterfactual wage subsidies tied to BS programs support manufacturing-to-BS transitions and reduce labor force exits, especially among older workers.

Suggested Citation

  • Daisuke Adachi & Lars Skipper, 2025. "When Offshoring Threatens Jobs: Lifelong Education and Occupation Choice," RFBerlin Discussion Paper Series 25114, Rockwool Foundation Berlin (RF Berlin).
    • Handle: RePEc:crm:wpaper:25114
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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