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This paper analyzes how increased offshoring affects labor income risk. Dealing with the variability of incomes, it is therefore distinct from a large number of studies explaining the level effects of globalization on income in the labor market. It provides an assessment that directly connects labor income risk and offshoring trends in a panel setting at the industry level using German data. Importantly,...
We read search theory’s equilibrium conditions for unemployment as an iso-unemployment curve. A country’s position along the curve reveals its preferences over the destruction–duration mix. Using a panel of 20 OECD countries over 1985–2009, we find that the employment protection legislation and collective bargaining coverage have opposing effects on the job destructions and unemployment durations,...
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