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Wage determination, Global Value Chains and role played by wage bargaining schemes: The case of Poland

Author

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  • Nikulin Dagmara

    (Gdańsk University of Technology, Faculty of Management and Economics, Naruto wicza 11/12, 80-233 Gdańsk, Poland)

  • Wolszczak-Derlacz Joanna

    (Gdańsk University of Technology, Faculty of Management and Economics, Naruto wicza 11/12, 80-233 Gdańsk, Poland)

Abstract

This study examines the linkages between GVC involvement and wages in Poland given different wage bargaining schemes. The analysis is based on microdata from the European Structure of Earnings Survey for Poland combined with sectoral data from the World Input-Output Database. In particular, two measures of GVC involvement were used: the share of foreign value added (FVA) to export and the measure of traditional offshoring. The institutional settings are represented by the wage bargaining scheme which reflects the level at which the collective pay is agreed. The results show that despite the lack of a significant relationship between the sectoral involvement in GVC and the level of wages in Poland, on average workers covered by the collective pay agreement receive higher wages. Moreover, the wage-GVC nexus is conditioned on the type of pay agreements: the positive wage effect from national agreements is eliminated for a certain range of GVC intensity.

Suggested Citation

  • Nikulin Dagmara & Wolszczak-Derlacz Joanna, 2022. "Wage determination, Global Value Chains and role played by wage bargaining schemes: The case of Poland," Economics and Business Review, Sciendo, vol. 8(4), pages 88-110, December.
    • Handle: RePEc:vrs:ecobur:v:8:y:2022:i:4:p:88-110:n:1
    DOI: 10.18559/ebr.2022.4.5
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    References listed on IDEAS

    as
    1. Matilde Cardoso & Pedro Cunha Neves & Oscar Afonso & Elena Sochirca, 2021. "The effects of offshoring on wages: a meta-analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 149-179, February.
    2. Sabina Szymczak & Joanna Wolszczak-Derlacz, 2022. "Global value chains and labour markets – simultaneous analysis of wages and employment," Economic Systems Research, Taylor & Francis Journals, vol. 34(1), pages 69-96, January.
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    More about this item

    Keywords

    wages; Global Value Chains; wage bargaining;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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