Work

The globalization of production, national labour regulations and income inequality in the global North and South, 1980–2013

Year: 2022

Type: article

Abstract: A central concern over global value chains (GVCs) is whether the integration of national firms into GVCs exacerbates income inequality within countries. However, despite decades of research, the distributional consequences of GVCs remain unclear in the empirical literature. Drawing on panel data from 96 countries between 1980 and 2013, we examine the effects of GVC integration on market income inequality and whether national labour regulations moderate these effects. We find integration increases inequality in the global North and South. More importantly, we find labour regulations amplify the inequality effects of integration in Southern countries by expanding the size of the informal sector while suppressing these effects in Northern countries by promoting unionization. This suggests institutional power from national labour regulations may enhance the bargaining power of labour in the North through increasing collective resources while disempowering labour in the South through reinforcing labour market segmentation between formal and informal sectors.

Source: Global Networks

DOI: 10.1111/glob.12392

Authors: Anthony Roberts, Thai Binh Tran

Institution: Colorado State University

Language: English

Topic: Global trade, sustainability, and social impact

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,750