Offshoring and Job Stability: Evidence from Italian Manufacturing

A. Lo Turco, D. Maggioni, M. Picchio

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Abstract

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.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Number of pages35
Volume2012-034
Publication statusPublished - 2012

Publication series

NameCentER Discussion Paper
Volume2012-034

Keywords

  • Offshoring
  • job stability
  • manufacturing
  • duration analysis
  • proportional hazard

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