Automation, offshoring, and the role of public policies

Bernhard Schmidpeter and Rudolf Winter-Ebmer

No 835, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We provide comprehensive evidence on the consequences of automation and offshoreability on the career of unemployed workers and the role of public policies. Using almost two decades of administrative data for Austria, we find that risk of automation is reducing the job finding probability; a problem which has increased over the past years. We show that this development is associated with increasing re-employment wages and job stability. Taken together, our findings imply a trade off between quantity and quality in these jobs. Provided training is beneficial in counteracting the negative impact of automation on the job finding rate but we find mixed effects in terms of post-unemployment wages.

Keywords: labor market polarization; technological change; offshoring; active labor market programs; unemployment (search for similar items in EconPapers)
JEL-codes: J24 J31 J64 J68 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eur and nep-lma
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https://www.econstor.eu/bitstream/10419/209720/1/1686376677.pdf (application/pdf)

Related works:
Working Paper: Automation, Offshoring, and the Role of Public Policies (2019)
Working Paper: Automation, Offshoring and the Role of Public Policies (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:835

DOI: 10.4419/86788968

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