Offshoring and Job Stability: Evidence from Italian Manufacturing

Alessia Lo Turco, Daniela Maggioni and Matteo Picchio

No 2012007, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

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 (search for similar items in EconPapers)
JEL-codes: C41 F14 F16 J62 (search for similar items in EconPapers)
Pages: 33
Date: 2012-04-19
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Offshoring and job stability: Evidence from Italian manufacturing (2013)
Working Paper: Offshoring and Job Stability: Evidence from Italian Manufacturing (2012)
Working Paper: Offshoring and Job Stability: Evidence from Italian Manufacturing (2012)
Working Paper: Offshoring and Job Stability: Evidence from Italian Manufacturing (2012)
Working Paper: Offshoring and Job Stability: Evidence from Italian Manufacturing (2012)
Working Paper: Offshoring and Job Stability: Evidence from Italian Manufacturing (2012)
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