Global Outsourcing of Human Capital and the Incidence of Unemployment in the United States

C Ogloblin ()

Applied Econometrics and International Development, 2004, vol. 4, issue 3

Abstract: The study is the first to examine empirically the impact of the new wave of global job outsourcing on skill-specific patterns of involuntary unemployment in the U.S. using the latest individual-level data. The estimates from a probit model show that, so far, global human-capital outsourcing has not shifted the risk of unemployment from lower-skilled to higher-skilled American workers. Overall, the probability of involuntary unemployment is negatively related with the worker’s level of education. For the outsourceable occupations, however, high-skilled workers are currently at a greater risk of unemployment than those with lower skills.

Date: 2004
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