Whose Job Goes Abroad? International Outsourcing and Individual Job Separations

TY - JOUR

T1 - Whose Job Goes Abroad? International Outsourcing and Individual Job Separations

AU - Munch, Jakob R.

N1 - JEL classification: F16, J68, C23, C41

PY - 2010/6

Y1 - 2010/6

N2 - This paper focuses on the adjustment costs of globalisation by studying the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1990-2003. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is estimated. Outsourcing is found to increase the unemployment risk of low-skilled workers, but the quantitative impact is modest. Outsourcing is also found to reduce the job change hazard rate for all education groups. Thus, the paper provides evidence for small adjustment costs of globalisation.

AB - This paper focuses on the adjustment costs of globalisation by studying the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1990-2003. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is estimated. Outsourcing is found to increase the unemployment risk of low-skilled workers, but the quantitative impact is modest. Outsourcing is also found to reduce the job change hazard rate for all education groups. Thus, the paper provides evidence for small adjustment costs of globalisation.

KW - Faculty of Social Sciences

KW - globalisering

KW - globalization

KW - adjustment costs

KW - competing risks duration model

U2 - 10.1111/j.1467-9442.2010.01607.x

DO - 10.1111/j.1467-9442.2010.01607.x

M3 - Journal article

SN - 0347-0520

VL - 112

SP - 339

EP - 360

JO - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

IS - 2

ER -