How do automation and offshorability influence unemployment duration and subsequent job quality?

Publication type

Research Paper

Series Number

11736

Series

IZA Discussion Papers

Authors

Publication date

August 15, 2018

Summary:

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.

Subjects

Link

https://www.iza.org/en/publications/dp/11736/how-do-automation-and-offshorability-influence-unemployment-duration-and-subsequent-job-quality

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