Work

Global value chains and labour markets – simultaneous analysis of wages and employment

Year: 2021

Type: article

Abstract: This study examines the overall effect of global value chains (GVCs) on wages and labour demand. It exploits the World Input–Output Database to measure GVC involvement via recently developed participation indices (using both backward and forward linkages) and the relative GVC position using three-stage least squares regression. We find that the relative GVC position is negatively correlated with wages and employment and that the GVC participation effect depends on whether backward or forward linkages are considered. Moreover, we find heterogeneity across both countries (middle- vs high-income) and sectors (manufacturing versus services). Notably, the effect of GVC involvement on the labour market differs from that produced by traditional domestic trade.

Source: Economic Systems Research

DOI: 10.1080/09535314.2021.1982678

Authors: Sabina Szymczak, Joanna Wolszczak-Derlacz

Institution: Gdańsk University of Technology

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Funder: Narodowe Centrum Nauki