The role of Global Value Chains for worker tasks and wage inequality

Piotr Lewandowski, Karol Madoń and Deborah Winkler
Authors registered in the RePEc Author Service: Karol Madoń

No 05/2023, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: 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 effect 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.

Keywords: routine task intensity; global value chains; globalisation; cross-country division of work; wage inequality (search for similar items in EconPapers)
JEL-codes: F66 J21 J24 J31 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2023-06
New Economics Papers: this item is included in nep-int, nep-lma and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ibs.org.pl/wp-content/uploads/2023/06/GVC_ ... y_IBS_WP_05_2023.pdf English Version (application/pdf)

Related works:
Working Paper: The Role of Global Value Chains for Worker Tasks and Wage Inequality (2023)
Working Paper: The Role of Global Value Chains for Worker Tasks and Wage Inequality (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibt:wpaper:wp052023

Access Statistics for this paper

More papers in IBS Working Papers from Instytut Badan Strukturalnych Contact information at EDIRC.
Bibliographic data for series maintained by IBS ().