Offshoring and Job Stability: Evidence from Italian Manufacturing

36 Pages Posted: 5 May 2012

See all articles by Alessia Lo Turco

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences

Daniela Maggioni

Polytechnic University of Marche

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science; IZA Institute of Labor Economics; SHERPPA - Ghent University

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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

Lo Turco, Alessia and Maggioni, Daniela and Picchio, Matteo, Offshoring and Job Stability: Evidence from Italian Manufacturing. IZA Discussion Paper No. 6514, Available at SSRN: https://ssrn.com/abstract=2051357 or http://dx.doi.org/10.2139/ssrn.2051357

Alessia Lo Turco (Contact Author)

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

Piazzale Martelli 8
Ancona
Italy
+390712207250 (Phone)

Daniela Maggioni

Polytechnic University of Marche ( email )

Piazzale Martelli 8
Ancona, 18039
Italy

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
+39 071 220 7176 (Phone)

HOME PAGE: http://www.univpm.it/matteo.picchio

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

SHERPPA - Ghent University ( email )

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Ghent, B-9000
Belgium

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