<< N°142
| N°142 | ||
| Issue Q2 2015 | ||
| Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing | ||
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Andrea F. Presbitero Matteo G. Richiardi Alessia A. Amighini |
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| 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. |
Abstract |
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| Offshoring ; Labor flexibility ; Temporary work ; Delocalization ; Labor market reforms ; | Keywords | |
| J21 ; F16 ; F23 ; | JEL classification | |
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