Patterns of International Fragmentation of Production and Implications for the Labor MarketsRodolfo Helg () and Lucia Tajoli () No 503, Working Papers from Research Seminar in International Economics, University of Michigan Abstract: Growing shares of international trade flows consist of intermediate and unfinished goods shipped from one country to another to combine manufacturing or services activities at home with those performed abroad. This configuration of the productive structure has been named “internationally fragmented”. The purpose of our work is to analyze the labor market effects of international fragmentation of production in Europe, looking at how it affects relative labor demand. Models of trade due to fragmentation of production suggest that when international fragmentation takes place we can expect to observe a change in the relative factor intensities of the affected industries. We use international trade data specifically related to international fragmentation of production to test if the shift in intensity of skilled and unskilled labor employed in Italy and Germany during the 1990s it related to the fragmentation activity. Keywords: international fragmentation of production; trade; labor demand (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:mie:wpaper:503 Access Statistics for this paper More papers in Working Papers from Research Seminar in International Economics, University of Michigan |
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