The impact of international outsourcing on labour market dynamics in Germany

Ronald Bachmann and Sebastian Braun

No 2008-020, SFB 649 Discussion Papers from Humboldt University Berlin, Collaborative Research Center 649: Economic Risk

Abstract: Using an administrative data set containing daily information on individual workers' employment histories, we investigate how workers' labour market transitions are affected by international outsourcing. In order to do so, we estimate hazard rate models for match separations, as well as for worker flows from employment to another job, to unemployment, and to out of the labour force. Outsourcing is found to have no significant impact on job stability in the manufacturing sector, but it is associated with increased job stability in the service sector. Furthermore, especially in the service sector the effect of outsourcing varies across skill levels. An analysis of the different labour market flows shows that labour market transitions are not affected symmetrically by international outsourcing.

Keywords: Job stability; labour market transitions; worker flows; outsourcing; duration analysis (search for similar items in EconPapers)
JEL-codes: F16 J23 J63 (search for similar items in EconPapers)
Date: 2008
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Related works:
Journal Article: THE IMPACT OF INTERNATIONAL OUTSOURCING ON LABOUR MARKET DYNAMICS IN GERMANY (2011)
Working Paper: The Impact of International Outsourcing on Labour Market Dynamics in Germany (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb649:sfb649dp2008-020

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