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Automation, Offshoring, and the Role of Public Policies

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Abstract

We provide comprehensive evidence on the consequences of automation and offshoreability on the labor market career of unemployed workers. Using almost two decades of administrative data for Austria, we find that risk of automation is reducing the job finding probability; a problem which has increased over the past years. We show that this development is associated with increasing re-employment wages and job stability. For workers in occupations at risk of being offshored we find the opposite effect. Our results imply a trade-off between quantity and quality in these jobs. Provided training is in general beneficial for workers in automation-related jobs.

Suggested Citation

  • Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2019. "Automation, Offshoring, and the Role of Public Policies," CDL Aging, Health, Labor working papers 2019-02, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:cdlwps:wp1902
    Note: English
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    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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