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Sectoral Adjustment of Employment to Shifts in Outsourcing and Trade: Evidence from a Dynamic Fixed Effects Multinomial Logit Model

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 cover a sample of individual Austrian male workers over the period 1988-2001. Our results strongly... Full description

1st Person: Egger, Peter
Additional Persons: Pfaffermayr, Michael verfasserin; Weber, Andrea verfasserin
Source: in Journal of applied econometrics Vol. 22, No. 3 (2007), p. 559-580
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Type of Publication: Article
Language: English
Published: 2007
Keywords: research-article
Online: Volltext
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Summary: 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 cover a sample of 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. In particular, an increase in the outsourcing intensity negatively affects the probability of staying in or changing into the manufacturing sector, even more so for industries with a comparative disadvantage.
Item Description: Copyright: Copyright 2007 John Wiley & Sons, Ltd.
Physical Description: Online-Ressource
ISSN: 1099-1255

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