Trade and Employment in Italy

This paper addresses the relationship between trade, employment and wages in Italy from the perspective of the specific features of its international specialisation pattern. It focuses on several key questions: To what extent has international economic integration, including trade and international outsourcing, changed the structure of the Italian economy? To what extent has exposure to foreign competition helped Italian firms to restructure and upgrade their production, so as to increase the skill intensity of their activities? What are the effects of these processes on employment and wages?