Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20157 
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion Papers No. 921
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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

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