The impact of production offshoring on the skill composition of manufacturing firms: evidence from Italy
AbstractIn this work we explore how the international outsourcing of production impacts the skill composition of employment within Italian manufacturing firms. In particular, our aim is to assess whether the choice to offshore production activities to cheap-labour countries implies a bias in the employment of skilled workers relative to unskilled ones. Using a balanced panel of firms covering the period 1995-2003, we set up a counterfactual analysis in which, by using a difference-in-differences propensity score matching estimator, we compare the dynamics of skill demand for treated and control firms while addressing the possible problem of selection bias. Our results identify a 'potential' skill bias effect of production offshoring. In particular, we find that treated firms tend to show an upward shift in the skill ratio with respect to the counterfactual sample, but coefficients are not significantly different from zero. When we look at the elements of the skill ratio separately, we find that the skill bias is driven by a fall in the employment of production workers (blue collars), rather than by the increase in the employment of non-production workers (white collars), thus providing further evidence on the unskilled labour-saving nature of international outsourcing.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 25 (2011)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIRA20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," KITeS Working Papers 219, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2008.
- Nathalie Chusseau & Joël Hellier, 2012. "Globalization and Inequality: Where do we stand?," Working Papers 279, ECINEQ, Society for the Study of Economic Inequality.
- Antonioli, Davide & Manzalini, Rocco & Pini, Paolo, 2011.
"Innovation, workers skills and industrial relations: Empirical evidence from firm-level Italian data,"
The Journal of Socio-Economics,
Elsevier, vol. 40(3), pages 312-326, May.
- Davide Antonioli & Paolo Pini & Rocco Manzalini, 2011. "Innovation, Workers Skills and Industrial Relations: Empirical Evidence from Firm-level Italian Data," Working Papers 201106, University of Ferrara, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.