IDEAS home Printed from https://ideas.repec.org/p/wiw/wus005/1264.html
   My bibliography  Save this paper

The effect of import penetration on labor market outcomes in Austrian manufacturing industry

Author

Listed:
  • Onaran, Özlem

Abstract

This paper estimates the effects of imports on employment, wages, and the wage share in Austria for the period of 1990-2005 using panel data of manufacturing industry. Imports are disaggregated according to their origin and as final vs. intermediate imports. There is evidence of significant negative effects of imports on employment, wages and the wage share. Particularly workers in high skilled sectors experience negative effects. Offshoring to both Eastern Europe and the developed countries have a negative impact on employment, whereas offshoring to the East has a positive effect on wages, indicating the dominance of scope effects. (author´s abstract)

Suggested Citation

  • Onaran, Özlem, 2008. "The effect of import penetration on labor market outcomes in Austrian manufacturing industry," Department of Economics Working Paper Series 119, WU Vienna University of Economics and Business.
  • Handle: RePEc:wiw:wus005:1264
    as

    Download full text from publisher

    File URL: https://epub.wu.ac.at/1264/
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lorentowicz, Andzelika & Marin, Dalia & Raubold, Alexander, 2005. "Is Human Capital Losing From Outsourcing? Evidence for Austria and Poland," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 76, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    2. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 907-940.
    3. Gerald Epstein, 2000. "Threat Effects and the Impact of Capital Mobility on Wages and Public Finances: Developing a Research Agenda," Working Papers wp7, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Fritz Breuss & Fritz Schebeck, 1999. "Costs and Benefits of EU Eastern Enlargement for Austria," Austrian Economic Quarterly, WIFO, vol. 4(1), pages 43-53, January.
    5. Jitendralal Borkakoti & Chris Milner (ed.), 1997. "International Trade and Labour Markets," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-14577-5, December.
    6. Fritz Breuss, 2010. "Globalisation, EU enlargement and income distribution," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 6(1/2), pages 16-34.
    7. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
    8. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1992. "On the Labor Market Effects of Immigration and Trade," NBER Chapters, in: Immigration and the Work Force: Economic Consequences for the United States and Source Areas, pages 213-244, National Bureau of Economic Research, Inc.
    9. Helmut Hofer & Peter Huber, 2003. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(2), pages 107-125, June.
    10. Hartmut Egger & Peter Egger, 2000. "Outsourcing and skill-specific employment in a small economy: Austria and the fall of the Iron Curtain," Economics working papers 2000-24, Department of Economics, Johannes Kepler University Linz, Austria.
    11. Hartmut Egger & Peter Egger, 2003. "Outsourcing and skill-specific employment in a small economy: Austria after the fall of the Iron Curtain," Oxford Economic Papers, Oxford University Press, vol. 55(4), pages 625-643, October.
    12. Ann Harrison, 2022. "Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 5, pages 89-135, World Scientific Publishing Co. Pte. Ltd..
    13. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
    14. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    15. Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
    16. Dani Rodrik, 1998. "Has Globalization Gone Too Far?," Challenge, Taylor & Francis Journals, vol. 41(2), pages 81-94, March.
    17. repec:wsr:wpaper:y:2007:i:008 is not listed on IDEAS
    18. Winter-Ebmer, Rudolf & Zimmermann, Klaus F., 1998. "East-West Trade and Migration: The Austro-German Case," IZA Discussion Papers 2, Institute of Labor Economics (IZA).
    19. Marin, Dalia & Lorentowicz, Andzelika & Raubold, Alexander, 2005. "Is Human Capital Losing from Outsourcing?," CEPR Discussion Papers 5344, C.E.P.R. Discussion Papers.
    20. Michael Landesmann & Sebastian Leitner & Robert Stehrer, 2001. "Trade Liberalization and Labour Markets: Perspective from OECD Economies," wiiw Working Papers 20, The Vienna Institute for International Economic Studies, wiiw.
    21. Robert Z. Lawrence & Matthew J. Slaughter, 1993. "International Trade and American Wages in the 1980s: Giant Sucking Sound or Small Hiccup?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2 Microec), pages 161-226.
    22. Robert Stehrer, 2004. "Can Trade Explain the Sector Bias of Skill-biased Technical Change?," wiiw Working Papers 30, The Vienna Institute for International Economic Studies, wiiw.
    23. Donald R. Davis & Prachi Mishra, 2007. "Stolper-Samuelson Is Dead: And Other Crimes of Both Theory and Data," NBER Chapters, in: Globalization and Poverty, pages 87-108, National Bureau of Economic Research, Inc.
    24. Aiginger, Karl & Winter-Ebmer, Rudolf & Zweimüller, Josef, 1995. "East European Trade and the Austrian Labour Market," CEPR Discussion Papers 1168, C.E.P.R. Discussion Papers.
    25. Ana L. Revenga, 1992. "Exporting Jobs?The Impact of Import Competition on Employment and Wages in U. S. Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 255-284.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Özlem Onaran, 2007. "The effects of globalization on income distribution," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 100, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    2. Rosario Crinò, 2009. "Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 197-249, April.
    3. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    4. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," Thesis Commons bmxag, Center for Open Science.
    5. Özlem Onaran, 2008. "The Effects of Globalization on Wages, Employment, and Wage Share in Austria," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 34(3), pages 337-360.
    6. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    7. Egger, Peter & Pfaffermayr, Michael & Weber, Andrea, 2003. "Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level," Economics Series 145, Institute for Advanced Studies.
    8. Özlem Onaran, 2012. "The Effect of Foreign Affiliate Employment on Wages, Employment, and the Wage Share in Austria," Review of Political Economy, Taylor & Francis Journals, vol. 24(2), pages 251-271, April.
    9. Yamashita, Nobuaki, 2008. "The impact of production fragmentation on skill upgrading: New evidence from Japanese manufacturing," Journal of the Japanese and International Economies, Elsevier, vol. 22(4), pages 545-565, December.
    10. Mion, Giordano & Zhu, Linke, 2013. "Import competition from and offshoring to China: A curse or blessing for firms?," Journal of International Economics, Elsevier, vol. 89(1), pages 202-215.
    11. Özlem Onaran, 2008. "Jobless Growth in the Central and Eastern European Countries," Working Papers wp165, Political Economy Research Institute, University of Massachusetts at Amherst.
    12. Nursel AYDINER‐AVSAR & ÖZlem ONARAN, 2010. "The Determinants Of Employment: A Sectoral Analysis For Turkey," The Developing Economies, Institute of Developing Economies, vol. 48(2), pages 203-231, June.
    13. Lawrence Edwards & Robert Z. Lawrence, 2010. "US Trade and Wages: The Misleading Implications of Conventional Trade Theory," NBER Working Papers 16106, National Bureau of Economic Research, Inc.
    14. Geishecker, Ingo, 2006. "The impact of international outsourcing on individual employment security: a micro level analysis," Discussion Papers 2006/17, Free University Berlin, School of Business & Economics.
    15. Geishecker, Ingo, 2008. "The impact of international outsourcing on individual employment security: A micro-level analysis," Labour Economics, Elsevier, vol. 15(3), pages 291-314, June.
    16. Peter Huber & Helmut Hofer, 2001. "Teilprojekt 9: Auswirkungen der EU-Erweiterung auf den österreichischen Arbeitsmarkt," WIFO Studies, WIFO, number 19839, April.
    17. Nathalie Chusseau & Joël Hellier, 2012. "Globalisation and Inequality: Where do we stand?," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 7-34, November.
    18. Katharina Längle, 2020. "Offshoring: What Consequences for Workers? Evidence from Global Value Chains," Documents de travail du Centre d'Economie de la Sorbonne 20005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    19. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    20. Robert C. Feenstra, 2007. "Globalization and Its Impact on Labour," wiiw Working Papers 44, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    Austria; import; wage; employment; labor share;
    All these keywords.

    JEL classification:

    • F29 - International Economics - - International Factor Movements and International Business - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wus005:1264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: WU Library (email available below). General contact details of provider: https://research.wu.ac.at/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.