Bernhard Schmidpeter (Essex University)
This paper provides comprehensive evidence on the consequences of automation and offshoreability on the labor market career of unemployed workers. Using almost two decades of administrative data for Austria, we find that automation has significantly reduced the job finding probability and that this decrease has occurred almost linearly in time for male workers. At the same time, our results show that this development is associated with increasing re-employment wages pointing toward strong within-occupational changes and a trade of between quantity and quality of jobs. Our estimates are less clear when investigating the impact of offshoreability. Exploring the possible beneficial effects of provided unemployment training, we find substantial room for improvement. Our analysis reveals interesting differences by gender, age, and educational attainment of the worker.