Outward investments and skill upgrading. Evidence from the Italian case
Davide Castellani (),
Ilaria Mariotti () and
Lucia Piscitello ()
No 185, KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy
The present paper investigates the effect of outward investments by Italian manufacturing firms on the domestic employment level and on its skill composition, as measured by the increase in the aggregate share of skilled workers (managers and clerks) in total employment. In doing so, the paper extends the existing empirical literature on the Italian case that has so far provided evidence on the changes in the employment intensity but not on the composition of the domestic employment. We carry out an analysis at the firm level based on the the behaviour of 108 Italian firms, which became multinational for the first time in 1998-2003, investing in either developed countries, CEECs or other developing economies, compared with the behaviour of a counterfactual group of firms constituted by 2,500 national firms that never invested abroad in the considered period. The econometric analysis supports that the internationalisation of activities by manufacturing firms does not reduce their domestic employment, independently of the destination of the investment, and that it may change the division of labour within the firm, thus leading to a higher share of skilled labour intensive activities, especially as a result of investments in CEECs.
Keywords: Foreign direct investment; Employment; Skill-upgrading. (search for similar items in EconPapers)
JEL-codes: F2 J21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-eff, nep-hrm, nep-int and nep-lab
Date: 2006-11, Revised 2006-11
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/WP185 ... riottiPiscitello.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:cri:cespri:wp185
Ordering information: This working paper can be ordered from
E G E A - via R. Sarfatti, 25 - 20136 Milano -Italy
Access Statistics for this paper
More papers in KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy via Sarfatti, 25 - 20136 Milano - Italy.
Series data maintained by Valerio Sterzi ().