Wage response to global production links – evidence for workers from 28 European countries (2005–2014)

"By using very rich individual-level data on workers from 28 European countries, we provide the first so extensive cross-country assessment of wage response to global production links within global value chains (GVCs) in the period 2005–2014. Unlike the other studies, we (i) address the importa...

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Main Authors: Parteka, Aleksandra, Wolszczak-Derlacz, Joanna
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Gdansk 2018
Gdansk University of Technology
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19303679124911218519-Wage-response-to-global-produc.htm
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author Parteka, Aleksandra
Wolszczak-Derlacz, Joanna
author_facet Parteka, Aleksandra
Wolszczak-Derlacz, Joanna
collection Library items
description "By using very rich individual-level data on workers from 28 European countries, we provide the first so extensive cross-country assessment of wage response to global production links within global value chains (GVCs) in the period 2005–2014. Unlike the other studies, we (i) address the importance of backward links in globally integrated production structures (capturing imports of goods and services required in any stage of the production of the final product); (ii) measure the occupational task profile of workers with new country-specific indices of routinisation; (iii) compare the impact of global production links on wages between workers from Western, Central–Eastern, and Southern Europe employed in manufacturing and non-manufacturing sectors; and (iv) account for direct and indirect dependence on GVC imports from developing and high-income countries. We consider the potential endogeneity problems. Our results suggest that global import intensity of production exhibits negative pressure on wages in Europe. This effect mainly concerns workers from Western Europe employed in manufacturing and is driven by production links with non-high-income countries. Our counterfactual estimates suggest that the effect for all of Europe is small, but the pressure of GVC imports on wages in Western Europe is not economically negligible, in particular when inputs are from less developed countries including China."
format TEXT
geographic Western Europe
id 19303679124911218519_41ef40504ff4408696f6da268a980f4d
institution ETUI-European Trade Union Institute
is_hierarchy_id 19303679124911218519_41ef40504ff4408696f6da268a980f4d
is_hierarchy_title Wage response to global production links – evidence for workers from 28 European countries (2005–2014)
language English
physical 48 p.
Digital
publishDate 2018
publisher Gdansk
Gdansk University of Technology
spellingShingle Parteka, Aleksandra
Wolszczak-Derlacz, Joanna
wages
value chains
production
manufacturing industry
service sector
Wage response to global production links – evidence for workers from 28 European countries (2005–2014)
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=136992495417
title Wage response to global production links – evidence for workers from 28 European countries (2005–2014)
topic wages
value chains
production
manufacturing industry
service sector
url https://www.labourline.org/KENTIKA-19303679124911218519-Wage-response-to-global-produc.htm