Firing at Subcontractors? Spillover Employment Effects of Offshoring in Italy
AbstractUsing 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 InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 238.
Date of creation: 07 Jan 2008
Date of revision:
International outsourcing; multinational firms; employment effects; propensity;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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