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Offshoring Potential and Employment Dynamics

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Abstract

This study addresses the impact of offshorability (a job characteristic indicating how easily a job can be offshored) on employment changes and worker mobility in Germany. A composite measure of offshorability for German data is used which broadens existing measurements such as Blinder (2009). Contrary to what the literature suggests, there is no evidence that net employment creation is higher in non-offshorable occupations. Furthermore, both hiring and job separation rates decline with offshorability. Results from a discrete-time hazard rate model confirm that the risk of exit from a job is smaller in more offshorable jobs; most of this is due to lower job-to-job mobility. The exception is for lowskilled workers, whose probability of leaving employment to other labour market states is higher if their jobs are more offshorable.

Suggested Citation

  • bernhard Boockmann, 2014. "Offshoring Potential and Employment Dynamics," IAW Discussion Papers 111, Institut für Angewandte Wirtschaftsforschung (IAW).
  • Handle: RePEc:iaw:iawdip:111
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    Cited by:

    1. Tobias Brändle, 2015. "Is offshoring linked to offshoring potential? Evidence from German linked employer–employee data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(4), pages 735-766, November.
    2. Philippe Frocrain & Pierre-Noël Giraud, 2017. "The evolution of tradable and non-tradable employment: evidence from France," Working Papers hal-01695159, HAL.

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    More about this item

    Keywords

    Offshorability; offshoring; employment; job stability; hiring; job loss;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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