Is labor flexibility a substitute to offshoring? Evidence from Italian manafacturing

Andrea Presbitero, Matteo Richiardi and Alessia Amighini ()

No 72, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences

Abstract: We test whether labor flexibility acts as a substitute to delocalization. Using Italian survey data, we show that a higher share of temporary workers appears to reduce the likelihood of future offshoring. However, once reverse causality and spurious correlation are controlled for with IV techniques, the relationship vanishes. This finding suggests that the threat of delocalization to win support for further labor market reforms is probably misplaced.

Keywords: cost saving; delocalization; labor flexibility; labor market reforms; offshoring; temporary work (search for similar items in EconPapers)
JEL-codes: F16 F23 J21 (search for similar items in EconPapers)
Pages: 27
Date: 2012-08
New Economics Papers: this item is included in nep-int and nep-lab
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http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir072.pdf First version, 2012 (application/pdf)

Related works:
Journal Article: Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing (2015)
Working Paper: Is labor flexibility a substitute to offshoring? Evidence from Italian manafacturing (2012)
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