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Global value chain participation and income inequality within enterprises: An empirical study based on Chinese-listed companies

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  • Yeerken, Alai
  • Feng, Deng

Abstract

In the debate about the causes of inequality, a growing strand of research focuses on the effects of globalization on income inequality. This study focuses on Chinese-listed companies from 2000–2016, examining the influence of GVC participation on intra-firm wage disparities. It finds a significant, non-linear inverted U-shaped relationship between GVC participation and wage inequality, which remains robust across various empirical specifications. The results also show that global value chain embedding has a more significant impact on income inequality within non-state-owned enterprises, larger enterprises, and enterprises with higher bargaining power among employees. This finding is qualitatively robust across various different empirical specifications.

Suggested Citation

  • Yeerken, Alai & Feng, Deng, 2024. "Global value chain participation and income inequality within enterprises: An empirical study based on Chinese-listed companies," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011875
    DOI: 10.1016/j.frl.2024.106158
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    References listed on IDEAS

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    More about this item

    Keywords

    Global value chain; Income inequality; Rent sharing; Common prosperity; Chinese-listed companies;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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