International Outsourcing and Individual Job Separations

Jakob Munch

No 05-11, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper studies the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1992-2001. Estimation of a single risk duration model, where no distinction is made between different types of transitions out of the job, shows that outsourcing has a clear significant positive effect on the job separation rate, but the effect corresponds to a limited number of lost jobs. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is also estimated. Outsourcing is found to increase the unemployment risk of workers and in particular low-skilled workers, but again the quantitative impact is not dramatic. Outsourcing also increases the job change hazard rate and mostly so for high-skilled workers.

Keywords: international outsourcing; job separations; competing risks duration model (search for similar items in EconPapers)
JEL-codes: C23 C41 F16 J68 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005-08
New Economics Papers: this item is included in nep-bec and nep-lab
References: View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0511

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