TY - JOUR
T1 - Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing
AU - Presbitero, Andrea F.
AU - Richiardi, Matteo G.
AU - Amighini, Alessia A.
N1 - Publisher Copyright:
© 2014 CEPII (Centre d'Etudes Prospectives et d'Informations Internationales), a center for research and expertise on the world economy.
PY - 2015/8/1
Y1 - 2015/8/1
N2 - 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.
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.
KW - Delocalization
KW - Labor flexibility
KW - Labor market reforms
KW - Offshoring
KW - Temporary work
UR - http://www.scopus.com/inward/record.url?scp=84930090266&partnerID=8YFLogxK
U2 - 10.1016/j.inteco.2014.07.004
DO - 10.1016/j.inteco.2014.07.004
M3 - Article
SN - 2110-7017
VL - 142
SP - 81
EP - 93
JO - International Economics
JF - International Economics
ER -