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

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 the threat of delocalization to win support for further labor market reforms is probably misplaced.

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Year of publication:	2012
Authors:	Presbitero, Andrea F. ; Richiardi, Matteo G. ; Amighini, Alessia
Institutions:	Collegio Carlo Alberto, Università degli Studi di Torino
Subject:	offshoring \| labor flexibility \| temporary work \| delocalization \| labor market reforms \| cost saving

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Extent:	application/pdf
Series:	LABORatorio R. Revelli Working Papers Series.
Type of publication:	Book / Working Paper
Notes:	Number 122
Classification:	J21 - Labor Force and Employment, Size, and Structure ; F16 - Trade and Labor Market Interactions ; F23 - Multinational Firms; International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010575401