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Contracting Out of Service Activities and the Effects on Sectoral Employment Patterns in South Africa

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Author Info
Tregenna, F.

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Abstract

This paper develops a methodology and uses household and labour survey data to analyse the extent of intersectoral outsourcing of the employment of specific labour-intensive activities in South Africa from 1997-2007. It is shown that the relatively high growth in services employment is driven by an expansion of employment of cleaners and security guards and an outsourcing-type reallocation of these activities from manufacturing and the public sector towards private services. These activities have limited scope for cumulative productivity increases. The analysis has implications for understanding changes in the sectoral structure of middle income economies.

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File URL: http://www.econ.cam.ac.uk/dae/repec/cam/pdf/cwpe0906.pdf
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Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0906.

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Date of creation: Feb 2009
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Handle: RePEc:cam:camdae:0906

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Related research
Keywords: Outsourcing; employment; manufacturing; services; public sector; South Africa;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
L80 - Industrial Organization - - Industry Studies: Services - - - General
M55 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Contracting Devices

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fiona Tregenna, 2008. "The Contributions Of Manufacturing And Services To Employment Creation And Growth In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages S175-S204, 08. [Downloadable!] (restricted)
  2. Fiona Tregenna, 2008. "Quantifying The Outsourcing Of Jobs From Manufacturing To Services," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages S222-S238, 08. [Downloadable!] (restricted)
  3. Michael Dietrich, 1999. "Explaining Economic Restructuring: an input-output analysis of organisational change in the European Union," International Review of Applied Economics, Taylor and Francis Journals, vol. 13(2), pages 219-240, May. [Downloadable!] (restricted)
  4. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March. [Downloadable!] (restricted)
  5. Jordi Pons-Novell, Elisabet Viladecans-Marsal, 1999. "Kaldor's Laws and Spatial Dependence: Evidence for the European Regions," Regional Studies, Taylor and Francis Journals, vol. 33(5), pages 443-451, July. [Downloadable!] (restricted)
  6. Hansen, Jorgen Drud & Zhang, Jie, 1996. "A Kaldorian Approach to Regional Economic Growth in China," Applied Economics, Taylor and Francis Journals, vol. 28(6), pages 679-85, June. [Downloadable!] (restricted)
  7. Yongbok Jeon, 2006. "Manufacturing, Increasing Returns and Economic Development in China, 1979-2004: A Kaldorian Approach," Working Paper Series, Department of Economics, University of Utah 2006_08, University of Utah, Department of Economics. [Downloadable!]
  8. Fernando Merino & Diego Rodríguez Rodríguez, 2007. "Business services outsourcing by manufacturing firms," Industrial and Corporate Change, Oxford University Press, vol. 16(6), pages 1147-1173, December. [Downloadable!] (restricted)
  9. Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-82, November. [Downloadable!] (restricted)
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