By browsing this website, you acknowledge the use of a simple identification cookie. It is not used for anything other than keeping track of your session from page to page. OK
1

The role of global value chains for worker tasks and wage inequality

Bookmarks
Book

Lewandowski, Piotr ; Madón, Karol ; Winkler, Deborah

Institute of Labor Economics, Bonn

IZA - Bonn

2023

40 p.

value chains ; globalization ; wage differential ; division of labour ; outsourcing ; labour market segmentation

Discussion Paper

16510

Business economics

https://docs.iza.org/dp16510.pdf

English

Bibliogr.

"This paper studies the relationship between global value chain (GVC) participation, worker-level routine task intensity, and wage inequality within countries. Using unique survey data from 38 countries, we find that higher GVC participation is associated with more routine-intensive work, especially among workers in offshorable occupations. This relationship is particularly strong in industry and in countries at lower development levels. As higher routine task intensity links with to wages, this indirectly widens within-country wage inequality. However, GVC participation directly contributes to reduced wage inequality, except in the richest countries. Overall, GVC participation is negatively associated with wage inequality in most low- and middle-income countries that receive offshored jobs, and positively in high-income countries that offshore jobs."

Digital



Bookmarks