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

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  • Tregenna, F.

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.

Suggested Citation

  • Tregenna, F., 2009. "Contracting Out of Service Activities and the Effects on Sectoral Employment Patterns in South Africa," Cambridge Working Papers in Economics 0906, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0906
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    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe0906.pdf
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    References listed on IDEAS

    as
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    3. Robert Rowthorn & Ken Coutts, 2004. "De-industrialisation and the balance of payments in advanced economies," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 767-790, September.
    4. Michael Dietrich, 1999. "Explaining Economic Restructuring: An input-output analysis of organisational change in the European Union," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(2), pages 219-240.
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    6. Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-382, November.
    7. 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 175-204, August.
    8. 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 222-238, August.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Outsourcing; employment; manufacturing; services; public sector; South Africa;

    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 - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; 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 - - Personnel Economics - - - Labor Contracting Devices

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