Offshoring and job loss fears: An econometric analysis of individual perceptions

Ingo Geishecker, Maximilian Riedl () and Paul Frijters

Labour Economics, 2012, vol. 19, issue 5, 738-747

Abstract: We quantify the impact of offshoring and other globalisation measures on individual perceptions of job security. For the analysis we combine industry-level offshoring measures with micro-level data from a large German household panel survey and estimate ordinal fixed effects models. Our results indicate that offshoring to low-wage countries significantly raises job loss fears whilst offshoring to high-wage countries somewhat lowers them. Over our sample period from 1995 to 2006, offshoring to low and high-wage countries together can account for about 13% of the total increase in job loss fears. High-skilled workers are more sensitive to offshoring although their objective job loss risk is lower relative to low-skilled workers, which we argue reflects the fact that they have more to lose from unemployment.

Keywords: Job loss fears; Job security perceptions; Outsourcing; Offshoring (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:19:y:2012:i:5:p:738-747

DOI: 10.1016/j.labeco.2012.05.018

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