Wages and the asian business process outsourcing industry

Date

2009-03

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Abstract

This paper measures the magnitudes of the determinants of wage rates in the Asian business process outsourcing (BPO) sector. It examines the effects of infrastructure, cost of living, and labor supply on the wages of the software developers in China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand and Taiwan. Using a panel data, we examine and conduct a multi-linear regression analysis on the determinants of the different wages of BPO providers. We find that technological Infrastructure has the biggest impact (positive) on wages, followed by labor supply (negative). Cost of living has the least impact (positive) on wages.

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Keywords

BPO, Business outsourcing industry, Labor market, Labor supply, Wage rates

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