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Offshoring And Employment Structure: Evidence From China

Listed author(s):
  • Hongbo CAI
  • Hao CHEN
  • Xinhe LIU

This paper analyses the change (1995-2009) and its reasons (Berman Decomposition 1993) of employment structure in China's industrial sectors. Then we test the impact of offshoring on the employment structure based on China’s panel data as a whole and by sector. The conclusion shows that China's overall employment structure in industrial sectors has been improving. The increase of skilled labour in the technology-intensive sectors obviously optimizes overall employment structure, while labour/resource-intensive and primary production sectors are both lag behind. Comparing with inter-industry change, labour-saving technology progress or rise in intra-industry productivity should be the main drivers of employment structure optimization. Significant sector differences in the impact of material offshoring and narrow material offshoring on employment structure exist, and service offshoring appears to promotes employment structure overall. Accordingly, we propose policy suggestions about the development of China's employment market in response to the new international division of labour.

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File URL: http://www.jaes.reprograph.ro/articles/Spring2012/articles/Cai,Hongbo;Chen,Hao;Liu,Xinhe..pdf
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Article provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.

Volume (Year): 7 (2012)
Issue (Month): 1(19)/ Spring 2012 ()
Pages: 35-47

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Handle: RePEc:ush:jaessh:v:7:y:2012:i:1(18)_spring2012:p:35
Contact details of provider: Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14

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  1. Egger, Hartmut & Falkinger, Josef, 2003. "The distributional effects of international outsourcing in a 2 x 2 production model," The North American Journal of Economics and Finance, Elsevier, vol. 14(2), pages 189-206, August.
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  7. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
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  9. Peter Egger, 2002. "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," The World Economy, Wiley Blackwell, vol. 25(2), pages 297-312, 02.
  10. Anna M. Falzoni & Lucia Tajoli, 2011. "Offshoring and the Skill Composition of Employment in the Italian Manufacturing Industries," Rivista di Politica Economica, SIPI Spa, issue 1, pages 121-153, January-M.
  11. Hongbo Cai & Xiangjun Zhang, 2011. "Off-Shoring and Labor Productivity: Evidence from China," Frontiers of Economics in China, Higher Education Press, vol. 6(2), pages 271-289, June.
  12. Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
  13. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
  14. Egger, Hartmut & Egger, Peter, 2005. "Labor market effects of outsourcing under industrial interdependence," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 349-363.
  15. Falk, Martin & Koebel, Bertrand M, 2002. " Outsourcing, Imports and Labour Demand," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 567-586, December.
  16. Hongbo Cai & Xiangjun Zhang, 2011. "Off-shoring and labor productivity: Evidence from China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(2), pages 271-289, June.
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