Original paper
Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing
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...
Paper Details
Title
Is labor flexibility a substitute to offshoring? Evidence from Italian manufacturing
Published Date
Aug 1, 2015
Journal
Volume
142
Pages
81 - 93
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Notes
History