Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223709 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13267
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We show, theoretically and empirically, that the effects of technological change associated with automation and offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder efficient assortative matching between firms with heterogeneous tasks and workers with heterogeneous skills. Our key hypothesis is that better matches enjoy a comparative advantage in exploiting automation and a comparative disadvantage in exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening) unemployment duration due to higher (lower) match selectivity. We find empirical support for this implication in a dataset covering 92 occupations and 16 sectors in 13 European countries from 1995 to 2010.
Subjects: 
automation
offshoring
two-sided heterogeneity
positive assortativity
wage inequality
horizontal specialization
core-task-biased technological change
JEL: 
O33
O47
F16
F66
J64
Document Type: 
Working Paper

Files in This Item:
File
Size
776.3 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.