Nordic Economic Policy Review

Globalization, labour market institutions and wage structure

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The Nordic Economic Policy Review is published by the Nordic Council of Ministers and addresses policy issues in a way that is useful for in-formed non-specialists as well as for professional economists. All articles are commissioned from leading professional economists and are subject to peer review prior to publication. The review appears twice a year. It is published electronically on the website of the Nordic Council of Ministers: www.norden.org/en. On that website, you can also order paper copies of the Review (enter the name of the Review in the search field, and you will find all the information you need). Managing Editor: Professor Torben M. Andersen, Department of Economics, University of Aarhus, Denmark. Special Editors for this volume: Research Professor Erling Barth, Institute for Social Research, Oslo, Norway and Professor Kalle O. Moene, Department of Economics, University of Oslo, Norway.



Education and labor market policies in an offshoring global economy

With rising unemployment and increasing income inequality, the labor market consequences of globalization and offshoring are back in the headlines. This paper summarizes recent research using Danish matched worker-firm data to examine how offshoring affects labor market outcomes. First, a rise in offshoring leads to a shift in the composition of labor demand toward particular occupation types within skill groups. Second, workers displaced from offshoring firms suffer more significant income losses than workers displaced for other reasons. Finally, training programs are used more intensively by workers initially employed by offshoring firms and these workers become reemployed with manufacturing firms at a faster pace than other workers. These findings are used to draw some education and labor market policy implications.


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