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Firing at Subcontractors? Spillover Employment Effects of Offshoring in Italy

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Author Info

  • Stefano Costa

    ()
    (ISAE)

  • Giovanni Ferri

    ()
    (University of Bari)

Abstract

Using firm-level data for Italy, we address the employment consequences of international production offshoring. We concur with previous literature that offshoring firms’ individual employment performances are no worse than at matching non-offshoring firms. However, offshoring might impart negative spillover effects on subcontracting firms, and this indirect effect might be felt particularly in Italy’s industrial structure (small-sized networked enterprises). To study this, we group firms within their typical subcontracting clusters, identify high offshoring clusters and compare them with a matching low offshoring sample. The evidence that employment performances worsen in the productive clusters with high offshoring supports our conjecture.

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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 238.

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Length: 22
Date of creation: 07 Jan 2008
Date of revision:
Handle: RePEc:csl:devewp:238

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Related research

Keywords: International outsourcing; multinational firms; employment effects; propensity;

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Cited by:
  1. Giovanni Barbiano di Belgiojoso & Sara Colautti & Massimo Florio & Cristina Castelli, 2008. "The Natuzzi Group and the Bari-Matera (Italy) upholstered furniture district. A case study of internationalisation in a traditional industry," Working Papers 200903, Centre for Industrial Studies (CSIL).
  2. Martin Borowiecki & Bernhard Dachs & Doris Hanzl-Weiss & Steffen Kinkel & Johannes Pöschl & Magdolna Sass & Thomas Christian Schmall & Robert Stehrer & Andrea Szalavetz, 2012. "Global Value Chains and the EU Industry," wiiw Research Reports 383, The Vienna Institute for International Economic Studies, wiiw.

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