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Academic Journal of Business & Management, 2023, 5(26); doi: 10.25236/AJBM.2023.052618.

The Impact of International Service Outsourcing on Employment in China

Author(s)

He Junli1, Liu Ziyue2

Corresponding Author:
He Junli
Affiliation(s)

1Office of Procurement and Bidding Management, Nanjing University of Finance and Economics, Nanjing 210000, China

2College of International Business and Economics, Nanjing University of Finance and Economics, Nanjing 210000, China

Abstract

This article first analyzes the current situation of service outsourcing in China and the current employment situation. Secondly, it analyzes the transmission mechanism of the impact of international service outsourcing on employment through wage change effects, technological progress effects, and talent structure adjustment effects. The empirical analysis concludes :at the industry level, international service outsourcing has a suppressive effect on employment in different types of industries, but the degree of impact varies across industries. International service outsourcing increases the labor demand elasticity of capital-intensive and technology-intensive industries, but has a less significant impact on the labor demand elasticity of labor-intensive industries. At the labor structure level, international service outsourcing has a suppressive effect on employment of both types of labor, but increases the employment elasticity of high-skilled labor and decreases the employment elasticity of low-skilled labor. At the outsourcing type level, compared to high-end international service outsourcing, middle-end and low-end service outsourcing has a stronger suppressive effect on employment in China.

Keywords

international service outsourcing, outsourcing country, employment effects, labor demand elasticity

Cite This Paper

He Junli, Liu Ziyue. The Impact of International Service Outsourcing on Employment in China. Academic Journal of Business & Management (2023) Vol. 5, Issue 26: 117-124. https://doi.org/10.25236/AJBM.2023.052618.

References

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