The Study On The Impacts Of Undertaking Offshore Outsourcing Services Upon The Employment Of China’s Three Major Industries

As the main form of international industrial transformation under the economicglobalization today, offshore outsourcing services develop more and more quickly. Thedeveloped and the developing countries have paid great attention on it. Serviceoutsourcing is characterized by high-technology, high additional value, less pollution,environment friendly and strong ability of employment absorbing. The study that theimpact of offshore outsourcing services on each industry employment and wage level,aims to explore how to optimize and improve the ways of promoting the employmentstructure as well as the industrial structure.Firstly, in the perspective of intra-product specialization, this paper will establish theintermediate inputs service outsourcing model of which offshore outsourcing servicesaffect employment and wage level. It concludes that large numbers of intensivetechnology service outsourcing business from contract countries will transfer to receivingcountries, by capital flowing by contract countries awarding receiving countries and therelative technical progress. Thus the two countries relative demand for skilled labourincreases, and the relative wage level of skilled workers rise. For a long time, the impactof the employment by offshore outsourcing services in a country depends on the net effectof service contracting and receiving. Then in the perspective of mechanism analysis howoffshore outsourcing services impact on employment and wage level, it is thought that thedirect transmission mechanism mainly refers to the direct transformation of developedcountries’ outsourcing jobs, and the indirect transmission mechanism mainly refers to fourchannels that the income multiplier effect, technological progress effect, the industrialconnection effect and the optimization of talent structure.Based on Cobb-Douglas economic growth model,the empirical analysis establish theeconometric model of which offshore outsourcing services affect employment and wagelevel. This paper selects1997-2011data of three industries in China. It concludes thatoffshore outsourcing services can produce a large number of employment opportunitiesand improve the employment absorbing ability of service industry, increase theemployment level of tertiary industry, and improve the domestic employment structure. More importantly it can increase the employment opportunities of high-quality talents,especially the college graduates. Moreover it can improve the average wage level oflaborers. As our country trapped in low outsourcing level and urban and rural laborstructure in the development of offshore outsourcing services，the secondary industry fallsinto low-level trap and the promotion has not fully reflected. Finally，this paper suppliessome policy suggestions based on interpretation of reality.