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Title:Sectoral Adjustment of Employment: The Impact of Outsourcing and Trade at the Micro Level PDF Logo
Authors:Egger, Peter
Pfaffermayr, Michael
Weber, Andrea Maria
Issue Date:2003
Series/Report no.:IZA Discussion paper series 921
Abstract:This paper analyzes the effects of trade and outsourcing on the transition probabilities of employment between sectors, using a dynamic multinomial logit framework with fixed effects. The data contain individual Austrian male workers over the period 1988-2001. Our results strongly support the view that international economic forces are important determinants of labor market turnover. Increases in imports, terms of trade and, especially, in the outsourcing share negatively affect the probability of staying in or changing into the manufacturing sector, even more so for industries with a comparative disadvantage.
Subjects:labor market turnover
outsourcing
dynamic discrete choice
fixed effects panel estimation
JEL:C23
J63
C25
F16
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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