Automation, offshoring and the role of public policies

We provide 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 risk of automation is reducing the job finding probability; a problem which has increased over the past years. We show that this development is associated with increasing re-employment wages and job stability. For workers in occupations at risk of being offshored we find the opposite effect. Our results imply a trade-off between quantity and quality in these jobs. Provided training is in general beneficial for workers in automation-related jobs.