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Offshoring and Job Stability: Evidence from Italian Manufacturing

Alessia Lo Turco, Daniela Maggioni and Matteo Picchio

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

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: 35 pages
Date: 2012-10
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://wps-feb.ugent.be/Papers/wp_12_817.pdf (application/pdf)

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