Services trade and labor market outcomes: Evidence from Italian firms

Omar Bamieh, Francesco Bripi, Matteo Fiorini

Publications: Contribution to journalArticlePeer Reviewed

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.

Original languageEnglish
Pages (from-to)673-701
Number of pages29
JournalReview of International Economics
Volume30
Issue number3
Early online date21 Oct 2021
DOIs
Publication statusPublished - Aug 2022

Austrian Fields of Science 2012

  • 502002 Labour economics
  • 502003 Foreign trade

Keywords

  • HBE
  • EMPLOYMENT EVIDENCE
  • PRODUCTIVITY
  • services trade
  • Italy
  • firm-level data
  • IMPORTERS
  • employment
  • RISE

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