This paper studies the impact of Chinese import competition on Italian manufacturing between 1991 and 2007. The first part evaluates whether local labour markets that were specialized in import-competing manufacturing industries suffered larger employment losses. The second part analyzes whether workers employed in those same industries at the beginning of the 1990s had more discontinuous careers afterwards.
The impact of Chinese import competition on Italian manufacturing has been modest, but with significant differences across sectors and geographical areas. Workers who were employed in more import-exposed sectors in 1991 did not experience more discontinuous careers and did not suffer wage losses; however, despite having a lower probability of continuing to work for their initial employer, they have proven able to successfully transition towards other firms, particularly in the services sector.
