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Position In Global Value Chains: The Impact On Wages In Central And Eastern European Countries

Author

Listed:
  • Sabina Szymczak

    (Gdansk University of Technology, Gdansk, Poland)

  • Aleksandra Parteka

    (Gdansk University of Technology, Gdansk, Poland)

  • Joanna Wolszczak-Derlacz

    (Gdansk University of Technology, Gdansk, Poland)

Abstract

This paper examines the relationship between the relative position of industries in Global Value Chains and wages in ten Central and Eastern European countries. We combine GVC measures of global import intensity of production, upstreamness and the length of the value chain with micro-data on workers. We find that the wages of CEEC workers are higher when their industry is at the beginning of the chain or at the end than in the middle. Secondly, wage changes depend on the interplay between upstreamness and GVC intensity. In sectors close to final demand, greater production fragmentation is associated with lower wages.

Suggested Citation

  • Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Position In Global Value Chains: The Impact On Wages In Central And Eastern European Countries," GUT FME Working Paper Series A 53, Faculty of Management and Economics, Gdansk University of Technology, revised Jan 2022.
    • Handle: RePEc:gdk:wpaper:53
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    Cited by:

    1. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    2. Valentine Fays & Benoît Mahy & François Rycx, 2023. "Wage differences according to workers' origin: The role of working more upstream in GVCs," LABOUR, CEIS, vol. 37(2), pages 319-342, June.
    3. Nicola Gagliardi & Benoît Mahy & François Rycx, 2019. "Does firms’ position in global value chains matter for workers’ wages?. An overview with a gender perspective," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 55-62.
    4. Nicola Gagliardi & Benoît Mahy & François Rycx, 2021. "Upstreamness, Wages and Gender: Equal Benefits for All?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 52-83, March.
    5. Nicola Gagliardi & Benoît Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 115-134.
    6. Ying Zhou & Sajid Anwar, 2022. "Immigrant Diversity, Institutional Quality, and GVC Position," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    7. Coveri, Andrea & Paglialunga, Elena & Zanfei, Antonello, 2024. "Global value chains and within-country inequality: The role of functional positioning," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 382-397.
    8. Basudeb Guha-Khasnobis & Anwesha Aditya & Suvir Chandna, 2023. "Employment and global value chain participation: the Indian experience," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 75-94, February.

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    More about this item

    Keywords

    wage; GVC; upstreamness; production fragmentation; CEEC;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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