The Impact Of Outsourcing To China On Hong Kong's Labor Market

Topics:
Outsourced Services
Tags:
Business Operations,
China,
Hong Kong,
It Operations,
Outsourcing,
Outsourcing & Subcontracting
Source:
University of California, Berkeley

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Overview: This paper seeks to fill this gap by measuring the impact of outsourcing to China on low skilled workers in Hong Kong. There are several reasons why Hong Kong's experience is of interest. First, outsourcing from Hong Kong to China was triggered by a clearly identifiable event?China's decision to open its market to foreign investors in 1980?which was arguably exogenous to economic forces in Hong Kong. Second, as the paper will document, the resulting relocation of production from Hong Kong to China is one of the largest cases of increased outsourcing in world history. Finally, there is suggestive aggregate evidence that outsourcing to China had an important effect on the relative demand for less-skilled workers in Hong Kong.

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Format: PDF | Size: 443KB | Date: Nov 2005 | Pages: 15

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