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Danielle Deibler

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Danielle Deibler - MoireAI | LinkedIn

Experience: MoireAI · Location: San Francisco Bay Area · 500+ connections on LinkedIn. View Danielle Deibler's profile on LinkedIn, a professional community ...

Danielle Deibler - RSA Conference

Danielle Deibler, CEO of MoireAI and Chairperson of MarvelousAI, has 30+ years of experience in Internet security, software, ML, and AI.

OASIS Open

Discover the crucial role of structured information sharing in combating hybrid threats in this #RSAC blog by Danielle Deibler and Max ...

The Effect of Outsourcing on Remaining Workers, Rent Distribution, and Inequality

Firms can decide whether to produce some goods and services in-house or purchase them from the market. Increasingly, they are purchasing from the market—using subcontractors, temp agencies, and other outsourced labor. Low-wage workers’ wages decline when they are outsourced, but little is known about how outsourcing affects remaining workers. If firms are rent sharing, outsourcing might increase remaining workers’ earnings because there are more rents or fewer workers to share them with. This paper measures the impact of occupational layoff (OL) outsourcing, where firms outsource some occupations, on the earnings and separations of workers who remain employed by those firms. Using employer-employee data based on German social security records in a dynamic difference-in-differences design, outsourcing increases remaining workers’ long-run earnings by 6% in a sample of 260 OL outsourcing events. Remainers are also more likely to stay at the outsourcing firm. Higher earnings and lower separations is consistent with remainers receiving additional rents. Earnings gains are larger for workers in the bottom-half of the within-firm wage distribution. When comparing effects of outsourcing by collective bargaining agreements (CBAs), outsourcing increases remainers’ long-term earnings by 6% in firms with CBAs, and lowers short-term earnings by 3% in firms without CBAs. These results are consistent with a model of wage setting where firms compensate remainers in the presence of a CBA. When there is no CBA, firms do not compensate remainers, and can lower their wages. Analyzing the impact of outsourcing on within-firm and overall ∗dmd2195@columbia.edu. Website: https://sites.google.com/view/ddeibler/home Many thanks to Bentley MacLeod, Suresh Naidu, and Miguel Urquiola for their helpful advice. Many thanks to Tanya Avilova, Iain Bamford, Ihsaan Bassier, Michael Best, Sandra Black, Sydnee Caldwell, Cynthia Doniger, Andrew Garin, Len Goff, Lucas Husted, Simon Jager, Matt Mazewski, David Rosenkranz, Johannes Schmieder, Gregor Schubert, Anna Stansbury, Pablo Warnes, Ron Yang, and the Columbia Applied Micro Seminar.