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Offshoring, Transition, and Training: Evidence from Danish Matched Worker-Firm Data

David Hummels, Jakob R. Munch, Lars Skipper, Chong Xiang

American Economic Review · 2012 · Volume 102 · Issue 3

DOI: 10.1257/aer.102.3.424

Abstract

We combine matched Danish worker-firm-trade data with detailed individual-worker training data. We find: 1) workers displaced from offshoring firms take up more vocational-training and have a harder time getting re-attached to the labor-force than other displaced workers, and they also exhibit higher vocational-training take-up rates 2 years before layoffs; 2) the staying workers with offshoring firms take up more vocational-training than those with non-offshoring firms; and 3) the post-secondary-training take-up rates for displaced workers are no different than for the general population.

Keywords

Human Capital, Skills, Occupational Choice, Labor Productivity, Contracting Out, Joint Ventures, Technology Licensing, Personnel Economics: Labor Contracting Devices, Trade and Labor Market Interactions

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