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

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  • Winter-Ebmer, Rudolf
  • Schmidpeter, Bernhard

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.

Suggested Citation

  • Winter-Ebmer, Rudolf & Schmidpeter, Bernhard, 2018. "How do Automation and Offshorability Influence Unemployment Duration and Subsequent Job Quality?," CEPR Discussion Papers 13112, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13112
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    References listed on IDEAS

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    1. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    2. Alan S. Blinder & Alan B. Krueger, 2013. "Alternative Measures of Offshorability: A Survey Approach," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 97-128.
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    Cited by:

    1. Brunello, Giorgio & Wruuck, Patricia & Maurin, Laurent, 2019. "Skill shortages and skill mismatch in Europe: A review of the literature," EIB Working Papers 2019/05, European Investment Bank (EIB).
    2. Grigoli, Francesco & Koczan, Zsoka & Topalova, Petia, 2020. "Automation and labor force participation in advanced economies: Macro and micro evidence," European Economic Review, Elsevier, vol. 126(C).
    3. Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    4. Brunello, Giorgio & Wruuck, Patricia, 2019. "Skill Shortages and Skill Mismatch in Europe: A Review of the Literature," IZA Discussion Papers 12346, Institute of Labor Economics (IZA).
    5. Malo, Miguel & Cueto, Begoña, 2019. "Do old and new labour market risks overlap? Automation, offshorability, and non-standard employment," MPRA Paper 95058, University Library of Munich, Germany.
    6. Katharina Dengler & Katrin Hohmeyer & Cordula Zabel, 2021. "Welfare recipients’ transition into employment and employment stability in Germany," LABOUR, CEIS, vol. 35(4), pages 450-484, December.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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