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Automation, Offshoring and the Role of Public Policies



We provide comprehensive evidence on the consequences of automation and o shoreability 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-o between quantity and quality in these jobs. Provided training is in general beneficial for workers in automation-related jobs.

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  • Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2019. "Automation, Offshoring and the Role of Public Policies," Economics working papers 2019-14, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2019_14
    Note: English

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    1. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    2. 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

    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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