August 21, 2013

The impact of trade, offshoring and multinationals on job loss and job finding

This contribution uses an extensive and unique set of combined Dutch micro-data to analyze the relationship between three dimensions of globalization and unemployment.
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These dimensions are firm level exports, offshorability of jobs, and working for a foreign-owned firm. Both the probability of getting fired and the time that is needed to find a new job after having been fired are studied. A large share of the variation in unemployment incidence is related to worker characteristics. Women, younger workers and foreign-born workers are more likely to become unemployed. After controlling for worker and firm heterogeneity, we find no evidence for a statistically significant relationship between exporting, working for a foreign firm and having an offshorable job, and the probability that an employee is fired. Furthermore, exposure to globalization prior to getting unemployed is not related to the probability of finding a new job after an employee has been fired.

Contacts

Semih Akcomak Read more
Henri de Groot Read more

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