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GVC INVOLVEMENT AND THE GENDER WAGE GAP: MICRO - EVIDENCE FOR EUROPEAN COUNTRIES

Dagmara Nikulin () and Joanna Wolszczak-Derlacz ()

No 57, GUT FME Working Paper Series A from Faculty of Management and Economics, Gdansk University of Technology

Abstract: In this paper we examine the linkages between involvement into global value chains (GVCs) and the gender wage inequalities. We use merged wide-ranging Structure of Earning (SES) and World Input Output Database (WIOD) for the years 2002, 2006, 2010 and 2014, covering manufacturing industries of 18 European countries. We employ a wealth of information on employees’ personal and company characteristics as well as sectoral variable reflecting the involvement in GVC measured by foreign value added embodied in exports (FVA/Exp.) We augment the Mincerian regression with GVC variable and report gender wage discrimination among European employees. The results indicate that wages of workers employed in sectors more involved in GVC are lower. However, the relationship between GVC and wages differs in respect to gender; women are more affected by the negative impact of greater trade involvement in comparison to men. There is some education/skill/occupation heterogeneity with workers with middle education level and middle skills being most affected. Finally, our results show the different patters across concentrated and competitive industries: the wage drop due GVC intensification is observed for the former ones.

Keywords: gender wage gap; gender inequalities; micro data; European countries (search for similar items in EconPapers)
JEL-codes: J16 J31 F16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-int and nep-lab
Date: 2019-08
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ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME ... WolszczakDerlacz.pdf First version, 2019 (application/pdf)

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