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Global Value Chains and Wages: International Evidence from Linked Worker-Industry Data

Author

Listed:
  • Aleksandra Parteka
  • Joanna Wolszczak-Derlacz

Abstract

Using a rich dataset on over 110,000 workers from nine European countries and the USA we study the wage response to industry dependence on foreign value added. We estimate a Mincerian wage model augmented with an input-output interindustry linkages measure accounting for task heterogeneity across workers. Low and mediumeducated workers and those performing routine tasks experience (little) wage decline due to major dependency of their industries on foreign inputs. Workers from former EU15 are more in danger of unfavourable wage effects than workers from new EU member states. American workers employed in service industries are more exposed than manufacturing workers.

Suggested Citation

  • Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2016. "Global Value Chains and Wages: International Evidence from Linked Worker-Industry Data," LIS Working papers 680, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:680
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    Citations

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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. Matthew C Mahutga & Michaela Curran & Anthony Roberts, 2018. "Job Tasks and the Comparative Structure of Income and Employment: Routine Task Intensity and Offshorability for the LIS," LIS Working papers 740, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    wage; global value chains; foreign value added; interindustry linkages;
    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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