{"title":"Offshoring within South African manufacturing firms: An analysis of the labour market effects","authors":"Anmar Pretorius, Carli Bezuidenhout, Marianne Matthee, Derick Blaauw","doi":"10.1111/saje.12315","DOIUrl":null,"url":null,"abstract":"South Africa's manufacturing sector experiences declining growth and labour demand, and increased imports of intermediate goods. The paper investigates the influence of offshoring on employment and wages for capital- and labour-intensive industries and skilled and unskilled workers, using firm- and employer–employee-level data. Unlike findings in developed countries, offshoring generally lowers employment in manufacturing firms and increases and decreases the percentage of unskilled workers and lower skilled workers, respectively. Increased narrow offshoring seemingly grows the cohort of unskilled workers, particularly in ultra-labour-intensive industries. As offshoring gains momentum, worker-level earnings increase in capital- and labour-intensive industries but decrease in ultra-labour-intensive industries.","PeriodicalId":46929,"journal":{"name":"SOUTH AFRICAN JOURNAL OF ECONOMICS","volume":"9 10","pages":""},"PeriodicalIF":1.6000,"publicationDate":"2022-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"SOUTH AFRICAN JOURNAL OF ECONOMICS","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1111/saje.12315","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
South Africa's manufacturing sector experiences declining growth and labour demand, and increased imports of intermediate goods. The paper investigates the influence of offshoring on employment and wages for capital- and labour-intensive industries and skilled and unskilled workers, using firm- and employer–employee-level data. Unlike findings in developed countries, offshoring generally lowers employment in manufacturing firms and increases and decreases the percentage of unskilled workers and lower skilled workers, respectively. Increased narrow offshoring seemingly grows the cohort of unskilled workers, particularly in ultra-labour-intensive industries. As offshoring gains momentum, worker-level earnings increase in capital- and labour-intensive industries but decrease in ultra-labour-intensive industries.
期刊介绍:
The South African Journal of Economics (SAJE) has a long and distinguished history, ranking amongst the oldest generalist journals in economics. In terms of editorial focus, the journal remains a generalist journal covering all fields in economics, but with a particular focus on developmental and African contexts. Toward this end, the editorial policy of the SAJE emphasizes scholarly work on developing countries, with African and Southern African development challenges receiving particular attention. While the SAJE remains a generalist journal, it encourages empirical work on developing and African economies. Importantly the focus is on both theoretical developments and methodological innovations that reflect developing country and African contexts and the policy challenges they pose. The objective of the journal is to be the premier vehicle for the publication of the most innovative work on development country and particularly African economic problems. It aims to be the target journal of choice not only for scholars located in Southern Africa, but of any scholar interested in the analysis of development challenges and their African applications. Clear theoretical foundations to work published should be a hallmark of the journal, and innovation in both theory and empirics appropriate to developing country and the African contexts are encouraged. In terms of submissions, the journal invites submissions primarily of original research articles, as well as survey articles and book reviews relevant to its context. In the case of both survey articles and book reviews, authors should note that a key minimum requirement is a critical reflection on the broader context of the existing literature.