Offshoring and job loss fears: An econometric analysis of individual perceptions |
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| Authors: | Ingo Geishecker Maximilian Riedl Paul Frijters |
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| Affiliation: | 1. Department of Economics, Michigan State University, East Lansing, MI, 48824, United States;2. The Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden;3. Department of Economics, P.O. Box 7082, SE-220 07 Lund, Sweden;4. Nottingham Centre for Research on Globalisation and Economic Policy, Sir Clive Granger Building, University of Nottingham, University Park, Nottingham, NG7 2RD;1. University of Birmingham, Birmingham, UK;2. Keio University, Tokyo, Japan |
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| Abstract: | We quantify the impact of offshoring and other globalisation measures on individual perceptions of job security. For the analysis we combine industry-level offshoring measures with micro-level data from a large German household panel survey and estimate ordinal fixed effects models. Our results indicate that offshoring to low-wage countries significantly raises job loss fears whilst offshoring to high-wage countries somewhat lowers them. Over our sample period from 1995 to 2006, offshoring to low and high-wage countries together can account for about 13% of the total increase in job loss fears. High-skilled workers are more sensitive to offshoring although their objective job loss risk is lower relative to low-skilled workers, which we argue reflects the fact that they have more to lose from unemployment. |
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