Individual Earnings, International Outsourcing and Technological Change: Evidence from Italy

Universita Politecnica delle Marche Economics Working Paper No. 266

23 Pages Posted: 14 Oct 2007 Last revised: 4 Oct 2008

See all articles by Chiara Broccolini

Chiara Broccolini

affiliation not provided to SSRN

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Stefano Staffolani

Università Politecnica delle Marche - Faculty of Economics

Date Written: February 13, 2008

Abstract

The aim of this paper is to empirically evaluate the relative effects of international outsourcing of materials and services and of ICT capital deepening on wage inequality between blue and white collars in the Italian manufacturing industry during the period 1985-1999. We merge an administrative data set on workers' wages and individual characteristics with data on imported inputs from Italian input-output tables and other sector-level variables. Our results confirm that both material and service outsourcing widen the skilled/unskilled wage gap while ICT capital deepening positively affects real wages regardless of the worker's status. However, important differences emerge when the overall sample is split between traditional and innovative sectors.

Keywords: International Outsourcing, ICT, Inequality, Wage

JEL Classification: F16, J31, C23, O3

Suggested Citation

Broccolini, Chiara and Lo Turco, Alessia and Presbitero, Andrea Filippo and Staffolani, Stefano, Individual Earnings, International Outsourcing and Technological Change: Evidence from Italy (February 13, 2008). Universita Politecnica delle Marche Economics Working Paper No. 266. Available at SSRN: https://ssrn.com/abstract=1019741 or http://dx.doi.org/10.2139/ssrn.1019741

Chiara Broccolini

affiliation not provided to SSRN ( email )

No Address Available

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences ( email )

Piazzale Martelli 8
Ancona
Italy
+390712207250 (Phone)

Andrea Filippo Presbitero (Contact Author)

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

Stefano Staffolani

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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