Offshoring and job stability: Evidence from Italian manufacturing

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

Research output: Contribution to journalArticleScientificpeer-review

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
Pages (from-to)27-46
JournalStructural Change and Economic Dynamics
Volume26
Issue number1
DOIs
Publication statusPublished - 2013

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Manufacturing
Offshoring
Workers
Fragmentation
Blue-collar workers
Policy intervention
Italy
Low-income countries
Foreign competition
Purchase
Developed countries

Cite this

Lo Turco, A. ; Maggioni, D. ; Picchio, M. / Offshoring and job stability : Evidence from Italian manufacturing. In: Structural Change and Economic Dynamics. 2013 ; Vol. 26, No. 1. pp. 27-46.
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Offshoring and job stability : Evidence from Italian manufacturing. / Lo Turco, A.; Maggioni, D.; Picchio, M.

In: Structural Change and Economic Dynamics, Vol. 26, No. 1, 2013, p. 27-46.

Research output: Contribution to journalArticleScientificpeer-review

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N2 - 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

AB - 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

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