Offshoring and Job Stability: Evidence from Italian Manufacturing
36 Pages Posted: 5 May 2012
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Offshoring and Job Stability: Evidence from Italian Manufacturing
Offshoring and Job Stability: Evidence From Italian Manufacturing
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
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