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

  • 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)

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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File URL: ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/WP219FalzoniTajoli.pdf
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Paper provided by KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy in its series KITeS 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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  1. Horgos, Daniel, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," Working Paper 62/2007, Helmut Schmidt University, Hamburg.
  2. Geishecker, Ingo & Gorg, Holger, 2005. "Do unskilled workers always lose from fragmentation?," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 81-92, March.
  3. Francesco Daveri & Cecilia Jona-Lasinio, 2008. "Off-Shoring and Productivity Growth in the Italian Manufacturing Industries," CESifo Working Paper Series 2288, CESifo Group Munich.
  4. 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.
  5. Manasse, Paolo & Stanca, Luca & Turrini, Alessandro, 2004. "Wage premia and skill upgrading in Italy: why didn't the hound bark?," Labour Economics, Elsevier, vol. 11(1), pages 59-83, February.
  6. Dluhosch, Barbara, 2006. "Intraindustry trade and the gains from fragmentation," The North American Journal of Economics and Finance, Elsevier, vol. 17(1), pages 49-64, March.
  7. Koen De Backer & Norihiko Yamano, 2007. "The Measurement of Globalisation using International Input-Output Tables," OECD Science, Technology and Industry Working Papers 2007/8, OECD Publishing.
  8. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-97, December.
  9. Pol Antras & Elhanan Helpman, 2007. "Contractual Frictions and Global Sourcing," Levine's Bibliography 321307000000000810, UCLA Department of Economics.
  10. Alan V. Deardorff, 2004. "A Trade Theorist’s Take on Skilled-Labor Outsourcing," Working Papers 519, Research Seminar in International Economics, University of Michigan.
  11. Deardorff, A.V., 1998. "Fragmentation Across Cones," Papers 98-14, Michigan - Center for Research on Economic & Social Theory.
  12. Alexander Hijzen, 2005. "A Bird’s Eye View of International Outsourcing: Data, Measurement and Labour Demand Effects," Economie Internationale, CEPII research center, issue 104, pages 45-63.
  13. 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.
  14. Egger, Hartmut & Egger, Peter, 2001. "Cross-border sourcing and outward processing in EU manufacturing," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 243-256, November.
  15. Chiara Broccolini & Alessia Lo Turco & Andrea F. Presbitero & Stefano Staffolani, 2008. "Individual Earnings, International Outsourcing and Technological Change," Development Working Papers 242, Centro Studi Luca d\'Agliano, University of Milano.
  16. Giovanni Ferri & Giovanni Costa, 2007. "The determinants and employment effects of international outsourcing: the case of Italy," series 0016, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Apr 2007.
  17. Luca De Benedictis, 2005. "Three Decades of Italian Comparative Advantages," The World Economy, Wiley Blackwell, vol. 28(11), pages 1679-1709, November.
  18. Karel Havik & Kieran Mc Morrow, 2006. "Global trade integration and outsourcing : How well is the EU coping with the new challenges?," European Economy - Economic Papers 259, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  19. 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.
  20. Alexander Hijzen & Paul Swaim, . "Does offshoring reduce industry employment?," Discussion Papers 07/24, University of Nottingham, GEP.
  21. 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.
  22. Roberto Antonietti & Davide Antonioli, 2011. "The impact of production offshoring on the skill composition of manufacturing firms: evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(1), pages 87-105.
  23. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
  24. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
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