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Occupational Diversification, Offshoring and Labor Market Volatility

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  • Bardhan, Ashok
  • Tang, John

Abstract

Are occupations that are well diversified across sectors less volatile, and less susceptible to external shocks? Most external shocks (e.g. manufacturing offshoring, oil shocks) impact the labor market along sectoral lines, i.e. they impact product and output markets; consequently, they affect employment in various occupations. Some shocks, however, like services offshoring, affect horizontals or occupations. We find that an occupation spread across many industrial sectors is less volatile in terms of numbers employed and the average wage. A dummy variable for offshoreable occupations does not affect the results; however, geographically clustered occupations seem more “at-risk,” after accounting for sectoral diversification.

Suggested Citation

  • Bardhan, Ashok & Tang, John, 2006. "Occupational Diversification, Offshoring and Labor Market Volatility," MPRA Paper 3168, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3168
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    1. Davaadorj, Zagdbazar & Enkhtaivan, Bolortuya & Lu, Wenling, 2024. "The role of job titles in online peer-to-peer lending: An empirical investigation on skilled borrowers," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    2. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2012. "Shared Skills: Occupation Clusters for Poverty Alleviation and Economic Development in the US," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3403-3425, November.
    3. Carmen UZLAU & Mariana BALAN & Corina-Maria ENE, 2017. "Labour Market Vulnerabilities In Romania During The Post- Crisis Period," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 46(2), pages 12-27, June.
    4. Lo Bue, Maria C. & Le, Tu Thi Ngoc & Santos Silva, Manuel & Sen, Kunal, 2022. "Gender and vulnerable employment in the developing world: Evidence from global microdata," World Development, Elsevier, vol. 159(C).
    5. Rémi BAZILLIER & Cristina TRANDAS-BOBOC & Oana CALAVREZO, 2014. "Employment vulnerability in Europe: Is there a migration effect?," LEO Working Papers / DR LEO 1825, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    6. Johnston Richard & Hogg Ryan & Miller Kristel, 2021. "Who is Most Vulnerable? Exploring Job Vulnerability, Social Distancing and Demand During COVID-19," The Irish Journal of Management, Sciendo, vol. 40(2), pages 100-142, December.

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    More about this item

    Keywords

    offshoring; external shocks; labor market volatility; occupations; diversification; geographic clusters;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • F2 - International Economics - - International Factor Movements and International Business

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