Position in global value chains and wages in Central and Eastern European countries

Sabina Szymczak, Aleksandra Parteka and Joanna Wolszczak-Derlacz

European Journal of Industrial Relations, 2022, vol. 28, issue 2, 211-230

Abstract: This paper examines the relationship between the relative position of industries in Global Value Chains (GVC) and wages in 10 Central and Eastern European countries. We combine GVC measures of global import intensity of production, upstreamness and the length of the value chain with micro-data on workers. We find that the wages of Central and Eastern European countries workers are higher when their industry is at the beginning of the chain or at the end than in the middle. Secondly, wage changes depend on the interplay between upstreamness and GVC intensity. In sectors close to final demand, greater production fragmentation is associated with lower wages.

Keywords: wage; Global Value Chains; upstreamness; production fragmentation; Central and Eastern European countries (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:eurjou:v:28:y:2022:i:2:p:211-230

DOI: 10.1177/09596801211053798

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