Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level

Peter Egger, Michael Pfaffermayr and Andrea Weber

No 145, Economics Series from Institute for Advanced Studies

Abstract: This paper analyzes the effects of trade and outsourcing on the transition probabilities of employment between sectors, using a dynamic multinomial logit framework with fixed effects. The data contain individual Austrian male workers over the period 1988-2001. Our results strongly support the view that international economic forces are important determinants of labor market turnover. Increases in imports, terms of trade and, especially, in the outsourcing share negatively affect the probability of staying in or changing into the manufacturing sector, even more so for industries with a comparative disadvantage.

Keywords: Labor market turnover; Outsourcing; Dynamic discrete choice; Fixed effects panel estimation (search for similar items in EconPapers)
JEL-codes: C23 C25 F16 J63 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2003-11
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Citations: View citations in EconPapers (16)

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https://irihs.ihs.ac.at/id/eprint/1529 First version, 2003 (application/pdf)

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Working Paper: Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level (2003)
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