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Offshoring and the skill composition of employment in the Italian manufacturing industries

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Author Info
Anna M. Falzoni (Università degli Studi di Bergamo and CESPRI, Bocconi University, Milan - Italy)
Lucia Tajoli (Politecnico di MIlano and CESPRI, Bocconi University, Milan -Italy)

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Abstract

In this paper, we assess the extent of offshoring in the Italian manufacturing industries, and we study how this phenomenon is affecting the skill composition of employment. Measuring offshoring using the import-use matrices of input-output tables, firstly we estimate the impact of offshoring on the general level of employment, and we don’t find any significant relationship. Then, we examine the relationship between offshoring and employment composition by skills. Our results show that the use of offshoring is not restricted to the search for cheaper unskilled labor, and its impact on the composition of employment seems to be quite different in different industry groups.

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Publisher Info
Paper provided by CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy in its series CESPRI Working Papers with number 219.

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Length: pages 33
Date of creation: Jul 2008
Date of revision: Jul 2008
Handle: RePEc:cri:cespri:wp219

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Related research
Keywords: offshoring; employment; skills;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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References listed on IDEAS
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  2. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Helg, Rodolfo & Tajoli, Lucia, 2005. "Patterns of international fragmentation of production and the relative demand for labor," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 233-254, August. [Downloadable!] (restricted)
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  4. Daniel Horgos, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," SOEPpapers 58, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  5. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings, Federal Reserve Bank of Kansas City, pages 59-102. [Downloadable!]
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  16. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May. [Downloadable!] (restricted)
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    Other versions:
  19. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact Of Outsourcing And High-Technology Capital On Wages: Estimates For The United States, 1979-1990," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 907-940, August. [Downloadable!] (restricted)
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    Other versions:
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