The Employment Effect Of Service Outsourcing On Contracting Countries

Along with the new round of industrial structure adjustment, the internationalindustry gradually develops from manufacturing to service sector. Service tradebetween countries are increasing, and further accelerate the speed of servicesindustry’transfer. The international service outsourcing as the mainstream form, playsa more and more important role in development of countries. Undertaking serviceoutsourcing has actively effect on the employment of developing countries. Sointernational competition of outsourcing services is becoming more and more fierce.There are a lot of problems in China’s job market at present stage, China also attachesgreat importance to the development of service outsourcing. So how to useundertaking service outsourcing to improve China’s employment situation is a topicworth studying.In theoretical analysis, this paper firstly introduces the status quo of China toundertake service outsourcing, mainly includes the background, market structure, thesource of out-contracting countriesand development trend; Secondly introduces themain situation of China’s job market, and the employment influence mechanism ofundertaking service outsourcing, including the effect of technological progress, talentagencies effect and multiplier effect.This paper has carried on the empirical analysis according to China’s job market.Through the cointegration analysis, test undertaking service outsourcing and theemployment proportion of the three times industry. Through the granger causality,test the relationship between undertaking service outsourcing and labor productivityand wages of three times industry. Based on the analysis, we get there the service exists cointegration relationshipbetween outsourcing and employment proportion of three times industry, but theservice outsourcing has great positive effect on the third industry employmentproportion. At the same time, service outsourcing has granger causality with laborproductivity and wages of the second and tertiary industry. The second industry laborproductivity will promote to undertake service outsourcing, undertaking serviceoutsourcing will promote tertiary industry labor productivity and wages increasing.