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Occupational Diversification, Offshoring and Labor Market Volatility

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Listed:
  • Bardhan, Ashok
  • Tang, John

Abstract

Are occupations that are well diversified across sectors less volatile, and less susceptible to external shocks? Most external shocks (e.g. manufacturing offshoring, oil shocks) impact the labor market along sectoral lines, i.e. they impact product and output markets; consequently, they affect employment in various occupations. Some shocks, however, like services offshoring, affect horizontals or occupations. We find that an occupation spread across many industrial sectors is less volatile in terms of numbers employed and the average wage. A dummy variable for offshoreable occupations does not affect the results; however, geographically clustered occupations seem more “at-risk,” after accounting for sectoral diversification.

Suggested Citation

  • Bardhan, Ashok & Tang, John, 2006. "Occupational Diversification, Offshoring and Labor Market Volatility," MPRA Paper 3168, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:3168
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    References listed on IDEAS

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    Cited by:

    1. Rémi BAZILLIER & Cristina TRANDAS-BOBOC & Oana CALAVREZO, 2014. "Employment vulnerability in Europe: Is there a migration effect?," LEO Working Papers / DR LEO 1825, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.

    More about this item

    Keywords

    offshoring; external shocks; labor market volatility; occupations; diversification; geographic clusters;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • F2 - International Economics - - International Factor Movements and International Business

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