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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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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. Luca De Benedictis, 2005. "Three Decades of Italian Comparative Advantages," The World Economy, Wiley Blackwell, vol. 28(11), pages 1679-1709, November.
  2. Paolo Manasse & Luca Stanca & Alessandro Turrini, 2001. "Wage Premia and Skill Upgrading in Italy: Why didn’t the Hound Bark?," Working Papers 37, University of Milano-Bicocca, Department of Economics, revised Nov 2001.
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  4. 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.
  5. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "Trading Tasks: A Simple Theory of Offshoring," NBER Working Papers 12721, National Bureau of Economic Research, Inc.
  6. F. Daveri & C. Jona-Lasinio, 2007. "Off-shoring and productivity growth in the Italian manufacturing industries," Economics Department Working Papers 2007-EP08, Department of Economics, Parma University (Italy).
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  8. Deardorff, A.V., 1998. "Fragmentation Across Cones," Papers 98-14, Michigan - Center for Research on Economic & Social Theory.
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  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.
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  17. Horgos, Daniel, 2007. "Labor Market Effects of International Outsourcing: How Measurement Matters," Working Paper 62/2007, Helmut Schmidt University, Hamburg.
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  19. 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.
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