Offshoring and Job Stability: Evidence From Italian Manufacturing
CentER Discussion Paper Series No. 201-034
35 Pages Posted: 26 Apr 2012
There are 2 versions of this paper
Offshoring and Job Stability: Evidence from Italian Manufacturing
Date Written: April 23, 2012
Abstract
We study the relationship between offshoring and job stability in Italy in the period 1995-2001 by using an administrative dataset on manufacturing workers. We find that the international fragmentation of production negatively affects job stability. Service offshoring and material purchases from developed countries foster job-to-job transitions within manufacturing of all workers and white collars, respectively. However, the most detrimental effects for job stability come from material offshoring to low income countries which drives blue collar workers out of manufacturing. Therefore, policy interventions should especially focus on this latter category of workers more exposed to fragmentation processes and foreign competition.
Keywords: Offshoring, job stability, manufacturing, duration analysis, proportional hazard
JEL Classification: C41, F14, F16, J62
Suggested Citation: Suggested Citation