Working Paper: CEPR ID: DP13112
Authors: Bernhard Schmidpeter; Rudolf Winterebmer
Abstract: 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.
Keywords: automation; offshorability; unemployment duration; job quality; labor market training
JEL Codes: J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Routine task intensity (RTI) (R20) | reemployment probabilities (J68) |
| offshorability (F23) | reemployment probabilities (J68) |
| automation (L23) | reemployment probabilities (J68) |
| offshorability (F23) | future job duration (C41) |
| offshorability (F23) | wages (J31) |
| labor market training (J24) | reemployment probabilities (J68) |
| automation (L23) | job stability (J63) |
| automation (L23) | earnings (J31) |
| offshorability (F23) | job stability (J63) |
| offshorability (F23) | earnings (J31) |