Vertical disintegration and training: evidence from a matched employer—employee survey
The mechanism through which outsourcing favourably impacts on workplace performance, particularly productivity, is still unclear. I explore the hypothesis that it does so by impacting workers' training. I use AWIRS-1995, a matched employer-employee survey that reports ample information on the e...
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description | The mechanism through which outsourcing favourably impacts on workplace performance, particularly productivity, is still unclear. I explore the hypothesis that it does so by impacting workers' training. I use AWIRS-1995, a matched employer-employee survey that reports ample information on the extent of technology and organizational change in Australian workplaces. I find that there is a positive and significant impact of outsourcing on training when I do not control for the correlation between ununobservable factors in these two binary outcomes. However, once I control for this correlation using a bivariate probit estimator, the training impact of outsourcing becomes negative. I then assess the sensitivity of the outsourcing effect to endogeneity by using the method advocated by Altonji et al. (J Polit Econ 113(1): 151-184, 2005) to find that this latter result persists even in the presence of a low correlation between unobservables. |
doi_str_mv | 10.1007/s11123-011-0256-9 |
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I explore the hypothesis that it does so by impacting workers' training. I use AWIRS-1995, a matched employer-employee survey that reports ample information on the extent of technology and organizational change in Australian workplaces. I find that there is a positive and significant impact of outsourcing on training when I do not control for the correlation between ununobservable factors in these two binary outcomes. However, once I control for this correlation using a bivariate probit estimator, the training impact of outsourcing becomes negative. I then assess the sensitivity of the outsourcing effect to endogeneity by using the method advocated by Altonji et al. (J Polit Econ 113(1): 151-184, 2005) to find that this latter result persists even in the presence of a low correlation between unobservables.</description><subject>Accounting/Auditing</subject><subject>Analytical estimating</subject><subject>Competition</subject><subject>Econometrics</subject><subject>Economic models</subject><subject>Economic statistics</subject><subject>Economic theory</subject><subject>Economics</subject><subject>Economics and Finance</subject><subject>Labor economics</subject><subject>Labor force</subject><subject>Labor market</subject><subject>Manufacturing</subject><subject>Microeconomics</subject><subject>Modeling</subject><subject>Older workers</subject><subject>Operations Research/Decision Theory</subject><subject>Organizational change</subject><subject>Outsourcing</subject><subject>Productivity</subject><subject>Standard error</subject><subject>Studies</subject><subject>Training</subject><subject>Unobservables</subject><subject>Variable 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subjects | Accounting/Auditing Analytical estimating Competition Econometrics Economic models Economic statistics Economic theory Economics Economics and Finance Labor economics Labor force Labor market Manufacturing Microeconomics Modeling Older workers Operations Research/Decision Theory Organizational change Outsourcing Productivity Standard error Studies Training Unobservables Variable coefficients Workplaces |
title | Vertical disintegration and training: evidence from a matched employer—employee survey |
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