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The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing

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  • Evan Capeluck

Abstract

The objective of this report is to examine the impact of outsourcing on manufacturing’s employment share in Canada. The report shows that outsourcing accounts for a small but significant part of the decline in the manufacturing employment share over the 1976-2008 period. Two approaches are used to determine the contribution of outsourcing to the evolution in manufacturing’s employment share in the report. The first approach uses input-output (I-O) analysis to estimate the impact of changes in the I-O structure of the economy on employment shares by industry. The second approach uses aggregate industry-by-occupation employment data to decompose changes in employment shares by industry in various ways.

Suggested Citation

  • Evan Capeluck, 2015. "The Evolution of Manufacturing Employment in Canada: The Role of Outsourcing," CSLS Research Reports 2015-18, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:1518
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    File URL: http://www.csls.ca/reports/csls2015-18.pdf
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    References listed on IDEAS

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    1. Giuseppe Berlingieri, 2013. "Outsourcing and the Rise in Services," CEP Discussion Papers dp1199, Centre for Economic Performance, LSE.
    2. Calista Cheung & James Rossiter & Yi Zheng, 2008. "Offshoring and Its Effects on the Labour Market and Productivity: A Survey of Recent Literature," Bank of Canada Review, Bank of Canada, vol. 2008(Autumn), pages 17-30.
    3. Evan Capeluck, 2015. "Explanations of the Decline in Manufacturing Employment in Canada," CSLS Research Reports 2015-17, Centre for the Study of Living Standards.
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    Cited by:

    1. Andrew Sharpe, 2021. "The Productivity Performance of New Brunswick Manufacturing: A Detailed Analysis, 1997-2019," CSLS Research Reports 2021-03, Centre for the Study of Living Standards.
    2. Alexander Murray, 2017. "The Effect of Import Competition on Employment in Canada: Evidence from the 'China Shock'," CSLS Research Reports 2017-03, Centre for the Study of Living Standards.
    3. Matthew Calver & Evan Capeluck, 2016. "Further Evidence on the Contribution of Services Outsourcing to the Decline in Manufacturing’s Employment Share in Canada," CSLS Research Reports 2016-11, Centre for the Study of Living Standards.
    4. Evan Capeluck, 2015. "Explanations of the Decline in Manufacturing Employment in Canada," CSLS Research Reports 2015-17, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Manufacturing; Outsouring; Employment; Canada; Input-Output;
    All these keywords.

    JEL classification:

    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
    • N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-

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