How Do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality?

Bernhard Schmidpeter () and Rudolf Winter-Ebmer
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Bernhard Schmidpeter: Vienna University of Economics and Business

No 11736, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze the effect of automation and offshorability on unemployment duration and post-unemployment outcomes such as wages and employment stability. Our rich administrative data allow us to evaluate the importance of providing unemployment training in this context. Employing a multivariate mixed proportional hazard model to deal with selectivity, we find that both the routine content in tasks as well as the probability of off-shoring negatively affects the re-employment possibilities. Labor market training is helping workers to ameliorate these negative effects and is remarkably on the spot. For workers who find re-employment, our results show that offshorability (but not automation) affects future job duration and wages positively. Our analysis reveals interesting differences by gender.

Keywords: unemployment duration; offshoring; routinisation (search for similar items in EconPapers)
JEL-codes: J64 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2018-08
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Citations: View citations in EconPapers (7)

Published - published as 'Automation, unemployment, and the role of labor market training' in: European Economic Review, 2021, 137, 103808

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Related works:
Working Paper: How do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality? (2018)
Working Paper: How do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality? (2018)
Working Paper: How do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality?* (2018)
Working Paper: How do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality? (2018)
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