Services trade and labor market outcomes: Evidence from Italian firms

Author(s)
Omar Bamieh, Francesco Bripi, Matteo Fiorini
Abstract

This paper empirically investigates the effects of services imports and exports on firm employment. We use microdata on Italian firms for the period 2009-2017. Applying a shift-share instrumental variable approach, we show that services imports and exports have a positive impact on total employment. This finding holds for managers, white-collar workers, and blue-collar workers. We also show that services exports are particularly effective in increasing employment of "servitized" manufacturing firms as well as of companies that are deeply integrated into international services markets. Overall, this paper suggests that firm employment might largely benefit from the services trade dimension of globalization.

Organisation(s)
Department of Economics
External organisation(s)
Banca d'Italia, European University Institute (EUI)
Journal
Review of International Economics
Volume
30
Pages
673-701
No. of pages
29
ISSN
0965-7576
DOI
https://doi.org/10.1111/roie.12581
Publication date
10-2021
Peer reviewed
Yes
Austrian Fields of Science 2012
502002 Labour economics, 502003 Foreign trade
Keywords
ASJC Scopus subject areas
Geography, Planning and Development, Development
Portal url
https://ucris.univie.ac.at/portal/en/publications/services-trade-and-labor-market-outcomes-evidence-from-italian-firms(8046a136-6db6-49f9-9d00-3ff225f09a0e).html