Production offshoring and the skill composition of Italian manufacturing firms: a counterfactual analysis
In this work we explore how the international outsourcing of production (offshoring) impacts the skill composition of Italian manufacturing firms. In particular, our aim is to assess if the choice to offshore production activities to cheap-labour countries implies a bias in the employment of skilled workers relative to unskilled workers. Using a balanced panel of firms across the period 1995-2003, we set up a counterfactual analysis in which, by using a difference-in-differences propensity score matching estimator, we compare the dynamics of skill demand for treated and control firms while addressing the possible problem of selection bias. Our results point to identify a "potential" skill bias effect of production offshoring. In particular, we find that treated firms tend to show an upward shift in the skill ratio with respect to the counterfactual sample, but coefficients are not significantly different from zero. When we look at the elements of the skill ratio separately, we find that the skill bias is significantly driven by a fall in the employment of production workers (blue collars), rather than by the increase in the employment of nonproduction workers (white collars), thus providing further evidence on the unskilled labour-saving nature of international outsourcing.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.openloc.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blomström, Magnus & Fors, Gunnar & Lipsey, Robert E., 1997.
"Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
200, Stockholm School of Economics.
- Blomstrom, Magnus & Fors, Gunnar & Lipsey, Robert E, 1997. "Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden," Economic Journal, Royal Economic Society, vol. 107(445), pages 1787-97, November.
- Blomström, Magnus & Fors, Gunnar & Lipsey, Robert E., 1997. "Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden," Working Paper Series 490, Research Institute of Industrial Economics.
- Magnus Blomstrom & Gunnar Fors & Robert E. Lipsey, 1997. "Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden," NBER Working Papers 6205, National Bureau of Economic Research, Inc.
- Görg, Holger & Hanley, Aoife, 2004.
"Does Outsourcing Increase Profitability?,"
IZA Discussion Papers
1372, Institute for the Study of Labor (IZA).
- Giorgio Barba Navaretti & Enrico Santarelli & Marco Vivarelli, 2002.
"The role of subsidies in promoting Italian joint ventures in least developed and transition economies,"
Taylor & Francis Journals, vol. 34(12), pages 1563-1569.
- G. Barba Navaretti & E. Santarelli & M. Vivarelli, 2000. "The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economics," Working Papers 386, Dipartimento Scienze Economiche, Universita' di Bologna.
- Giorgio BARBA NAVARETTI & Enrico SANTARELLI & Marco VIVARELLI, 2000. "The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economies," Working Papers 144, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
When requesting a correction, please mention this item's handle: RePEc:trn:utwpol:0903. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Rentocchini)The email address of this maintainer does not seem to be valid anymore. Please ask Francesco Rentocchini to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.