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How Do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality?

Author

Listed:
  • Schmidpeter, Bernhard

    () (University of Essex)

  • Winter-Ebmer, Rudolf

    () (University of Linz)

Abstract

We analyze the effect of automation and offshorability on unemployment duration and post-unemployment outcomes such as wages and employment stability. Our rich administrative data allow us to evaluate the importance of providing unemployment training in this context. Employing a multivariate mixed proportional hazard model to deal with selectivity, we find that both the routine content in tasks as well as the probability of off-shoring negatively affects the re-employment possibilities. Labor market training is helping workers to ameliorate these negative effects and is remarkably on the spot. For workers who find re-employment, our results show that offshorability (but not automation) affects future job duration and wages positively. Our analysis reveals interesting differences by gender.

Suggested Citation

  • Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2018. "How Do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality?," IZA Discussion Papers 11736, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11736
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    References listed on IDEAS

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    1. 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

    routinisation; offshoring; unemployment duration;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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