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Effect of the integration into Global Value Chains on the employment contract in Central and Eastern European countries
Abstract
Research background: In the era of globalization, there is a need to address decent work deficits in Global Value Chains (GVCs). The forms of working conditions reveal a broad dispersion of contents. The literature review exposes hardly any Europe-focused research assessing the socioeconomic impact of global production links and going beyond their pure economic effects assessed in terms of employment, productivity or wages. Purpose of the article: This paper investigates how involvement in GVCs affects labour standards. In particular, we assess how the integration into GVCs impacts the probability of having indefinite type of employment contract, which stands for one of the decent work indicator. Moreover, we draw individual and firm-level characteristics determining the type of employment contract. Methods: We use linked employer-employee data from the Structure of Earnings Survey merged with industry-level statistics on GVCs based on World Input-Output Database — the sample is composed of over 5 million workers from 10 Central and Eastern European countries (CEEC) observed in 2014. The involvement into GVCs is measured using a novel approach based on the concepts of global import intensity (GII). We employ logistic regression with robust standard errors. Findings & Value added: Controlling for individual and firm-level characteristics (sex, age, education level, length of service in enterprise, size of the enterprise) we find that greater integration into GVCs increases the probability of having temporary type of employment contract, mainly in tradable sectors. However, across CEE countries the relation between GVC and employment type is mixed. In this way we expand the existing literature by reporting the effects of GVCs on labour standards in CEEC.
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- Category:
- Articles
- Type:
- artykuły w czasopismach
- Published in:
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EQUILIBRIUM Quarterly Journal of Economics and Economic Policy
no. 15,
pages 275 - 294,
ISSN: 1689-765X - Language:
- English
- Publication year:
- 2020
- Bibliographic description:
- Nikulin D., Szymczak S.: Effect of the integration into Global Value Chains on the employment contract in Central and Eastern European countries// EQUILIBRIUM Quarterly Journal of Economics and Economic Policy -Vol. 15,iss. 2 (2020), s.275-294
- DOI:
- Digital Object Identifier (open in new tab) 10.24136/eq.2020.013
- Sources of funding:
- Verified by:
- Gdańsk University of Technology
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