Individual Earnings, International Outsourcing and Technological Change: Evidence from Italy

Broccolini, Chiara; Turco, Alessia Lo; Presbitero, Andrea F.; Staffolani, Stefano

doi:10.1080/10168731003658744

Cited by 7 publications

(1 citation statement)

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“…More recent contributions, therefore, have used worker-level datasets to explore this issue. The available evidence suggests that offshoring may increase the probability of industry switching (Egger et al, 2007) and the risk of job displacement (Geishecker, 2008;Munch, 2008); it may also lead to longer periods of non-employment after a job loss (Geishecker, 2008) and may exert downward pressures on wages, especially for workers with lower educational levels (Geishecker andGorg, 2005, 2008b;Geishecker et al, 2007;Munch and Skaksen, 2009;Broccolini et al, 2010). Nevertheless, the economic magnitude of these effects generally is not large.…”

Section: Related Literaturementioning

confidence: 99%

The Effects of Offshoring on Post-displacement Wages: Evidence from the United States

Crinò

2010

The World Economy

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This paper studies the effects of offshoring on post‐displacement wages using a large and nationally representative sample of US workers displaced from a manufacturing industry during the 1990s. The empirical results based on Mincerian regressions of individual re‐employment earnings on industry‐level offshoring proxies, show that the effects of offshoring on post‐displacement wages are negative, although not economically large. The preferred specifications suggest, in fact, that a one percentage point increase in offshoring in the pre‐displacement industry reduces earnings on the new job by approximately 0.3–0.6 per cent. These figures imply that the cumulative rise in offshoring over the sample period may have led to a drop of between US$110 and US$330 in the yearly re‐employment wages of US displaced workers. While the magnitude of the effect is largely independent of individual characteristics such as gender, age, occupation and educational level, it does depend on the duration of non‐employment and on workers’ industrial reallocation after displacement. In particular, the effects are relatively stronger for individuals who stay longer before finding a new job, as well as for those who leave the pre‐displacement industry after the job loss.

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