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Services trade and labor market outcomes: Evidence from Italian firms

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  • Omar Bamieh
  • Francesco Bripi
  • Matteo Fiorini

Abstract

This paper empirically investigates the effects of services imports and exports on firm employment. We use microdata on Italian firms for the period 2009–2017. Applying a shift‐share instrumental variable approach, we show that services imports and exports have a positive impact on total employment. This finding holds for managers, white‐collar workers, and blue‐collar workers. We also show that services exports are particularly effective in increasing employment of “servitized” manufacturing firms as well as of companies that are deeply integrated into international services markets. Overall, this paper suggests that firm employment might largely benefit from the services trade dimension of globalization.

Suggested Citation

  • Omar Bamieh & Francesco Bripi & Matteo Fiorini, 2022. "Services trade and labor market outcomes: Evidence from Italian firms," Review of International Economics, Wiley Blackwell, vol. 30(3), pages 673-701, August.
    • Handle: RePEc:bla:reviec:v:30:y:2022:i:3:p:673-701
    DOI: 10.1111/roie.12581
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    1. Wang, Xuefeng & Liu, Haiyun, 2023. "FDI in services and firm innovation," Finance Research Letters, Elsevier, vol. 56(C).

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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