Offshoring production in Italy leads to decline in middle-manager jobs.
The article examines how moving production overseas affects the types of workers hired by Italian manufacturing firms. By analyzing data from 1995 to 2003, the study shows that firms that outsourced production in 1998-2000 tended to employ fewer skilled middle-managers compared to firms that kept production in-house. This suggests that offshoring can lead to a decrease in skilled workers, particularly middle-managers, due to a mix of replacing redundant tasks and transferring managerial roles to coordinate activities abroad.