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Type: Journal article
Title: The impact of material and service outsourcing on employment in Thailand's manufacturing industries
Author: Thangavelu, S.
Chongvilaivan, A.
Citation: Applied Economics, 2011; 43(27):3931-3944
Publisher: Taylor & Francis
Issue Date: 2011
ISSN: 0003-6846
Statement of
Shandre M. Thangavelu and Aekapol Chongvilaivan
Abstract: With increasing emphasis on the importance of outsourcing, the ‘fear of job losses’ has been of significant interest, not only in the developed countries, but also in the developing countries. In this article, we empirically investigate the impacts of intermediate inputs (material) and services outsourcing on the relative demands for skilled and unskilled labour in Thailand's manufacturing sectors from 1999 to 2003. Based on the aggregation of establishment-level data at 4-digit industrial classification, we find that both intermediate inputs and service outsourcing are relatively skill-biased. Further, our results show that intermediate inputs outsourcing has negative impacts on the relative demands for skilled and unskilled workers, whereas service outsourcing shifts the demand towards skilled workers at the expense of unskilled workers.
Rights: © 2011 Taylor & Francis
DOI: 10.1080/00036841003742595
Appears in Collections:Aurora harvest 8
Economics publications

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