We study the relationship between offshoring and job stability in Italy in the period 1995-2001 by using an … stability. Service offshoring and material purchases from developed countries foster job-to-job transitions within manufacturing … material offshoring to low income countries which drives blue collar workers out of manufacturing. Therefore, policy …

We present a dynamic model where the probability of outsourcing production is increasing in the firm’s expectation of … outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed … characteristics of the firms as well as firm fixed effects. -- Outsourcing ; technological change …

influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …