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The Impact of International Service Outsourcing on the Employment Structure

Author: HuangXiaLin
Tutor: FengJin
School: Zhejiang University
Course: International Trade
Keywords: Service outsourcing Employment structure technology improvement Wage level
CLC: F249.2;F752.68
Type: Master's thesis
Year: 2011
Downloads: 221
Quote: 0
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Abstract


With the process of economic globalization further deepened, international service outsourcing has become the next main mode of international industrial transfer, and develops quickly. Characterized by high-technology, high additional value, less pollution, environment friendly, and strong ability to absorb labor force, international service outsourcing will have profound impact in a country’s employ structure as well as the promotion of industrial structure.The present paper seeks to study how the service outsourcing works on the employment levels in China from the perspective of wage levels. Firstly, this paper introduces the related concept of service outsourcing, analyzes the development status in China, the evolution of employment structure, and discusses the effect mechanism of the impact of service outsourcing on the structure of employment, using both qualitative and quantitative methods. We get the results that service outsourcing can impact employment structure mainly through four different channels: Technology advance, demand driven, scale economy and cumulative effects of foreign capital.Secondly, based on the content all above, the author selects the relevant data on the Statistical Yearbook and is engaged in the regression measurement. The paper ends up with a conclusion as follows. In the short term, service outsourcing will have positive influence on the employment of third industry, thus boost the economy; but in the long run,it will have a negative impact on the employment level of the second industry. At the same time, undertaking service outsourcing will improve wages level of all three industries. Furthermore, the paper compares the different consequences between China and Western countries involving outsourcing services, and comes up with possible explanations.Finally, it puts forward some policy recommendations based on the previous analysis.Ⅲ

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade > Import and Export Trade Overview > Special trade
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