Whose Job Goes Abroad? International Outsourcing and Individual Job Separations

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This paper focuses on the adjustment costs of globalisation by studying the effects of international outsourcing on individual transitions out of jobs in the Danish manufacturing sector for the period 1990-2003. A competing risks duration model that distinguishes between job-to-job and job-to-unemployment transitions is estimated. Outsourcing is found to increase the unemployment risk of low-skilled workers, but the quantitative impact is modest. Outsourcing is also found to reduce the job change hazard rate for all education groups. Thus, the paper provides evidence for small adjustment costs of globalisation.
Original languageEnglish
JournalScandinavian Journal of Economics
Volume112
Issue number2
Pages (from-to)339-360
Number of pages22
ISSN0347-0520
DOIs
Publication statusPublished - 2010

ID: 19980626