Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing

Andrea F. Presbitero; Matteo G. Richiardi; Alessia A. Amighini

doi:10.1016/j.inteco.2014.07.004

Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing

Andrea F. Presbitero
, Matteo G. Richiardi
, Alessia A. Amighini

Department of Economics and Business Studies

Research output: Contribution to journal › Article › peer-review

Abstract

We test whether labor flexibility acts as a substitute to delocalization. Using Italian survey data, we show that a higher share of temporary workers appears to reduce the likelihood of future offshoring. However, once reverse causality and spurious correlation are controlled for with IV techniques, the relationship vanishes. This finding suggests that a solid argument that labor flexibility and offshoring are substitutes has still to be made.

Original language	English
Pages (from-to)	81-93
Number of pages	13
Journal	International Economics
Volume	142
DOIs	https://doi.org/10.1016/j.inteco.2014.07.004
Publication status	Published - 1 Aug 2015

Keywords

Delocalization
Labor flexibility
Labor market reforms
Offshoring
Temporary work

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10.1016/j.inteco.2014.07.004

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abstract = "We test whether labor flexibility acts as a substitute to delocalization. Using Italian survey data, we show that a higher share of temporary workers appears to reduce the likelihood of future offshoring. However, once reverse causality and spurious correlation are controlled for with IV techniques, the relationship vanishes. This finding suggests that a solid argument that labor flexibility and offshoring are substitutes has still to be made.",

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AB - We test whether labor flexibility acts as a substitute to delocalization. Using Italian survey data, we show that a higher share of temporary workers appears to reduce the likelihood of future offshoring. However, once reverse causality and spurious correlation are controlled for with IV techniques, the relationship vanishes. This finding suggests that a solid argument that labor flexibility and offshoring are substitutes has still to be made.

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KW - Labor flexibility

KW - Labor market reforms

KW - Offshoring

KW - Temporary work

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ER -

Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing

Abstract

Keywords

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