Abstract
This paper uses a multi-country microeconomic setting to contribute to the literature on the nexus between production fragmentation and wages. Exploiting a rich dataset on over 110,000 workers from nine Eastern and Western European countries and the United States, we study the relationship between individual workers’ wages and industry ties into global value chains (GVCs). We find an inverse (but weak) relationship between the degree of industries’ involvement in GVCs and wages. Workers employed in routine occupations clearly earn less, but it is difficult to attribute it to the role played by the involvement of their countries and industries in global value chains.
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- Category:
- Articles
- Type:
- artykuł w czasopiśmie wyróżnionym w JCR
- Published in:
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OPEN ECONOMIES REVIEW
no. 30,
pages 505 - 539,
ISSN: 0923-7992 - Language:
- English
- Publication year:
- 2019
- Bibliographic description:
- Parteka A., Wolszczak-Derlacz J.: Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data// OPEN ECONOMIES REVIEW. -Vol. 30, iss. 3 (2019), s.505-539
- DOI:
- Digital Object Identifier (open in new tab) 10.1007/s11079-018-9518-8
- Bibliography: test
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- Normalized weighted regression with cluster-robust standard errors; all specifications include sector and country fixed effects as well as country-industry panel. *, **, *** denote statistical significance at 1, 5, 10% respectively; default categories: low-educated workers and Rout. GVC jct treated as an endogenous variable and instrumented on the basis of the gravity equation, as explained in the main text. The figures reported for the under-identification test are the p-values and refer to the Kleibergen-Paap rk LM test statistic, where a rejection of the null indicates that the instruments are not under-identified. The weak identification test refers to the Kleibergen-Paap Wald rk F statistic test for the presence of weak instruments. As a 'rule of thumb' the statistic should be at least 10 for weak identification not to be considered a problem (Staiger and Stock 1997) Source: own calculations with data from WIOD Global Value Chains and Wages: Multi-Country Evidence from Linked... open in new tab
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- Gdańsk University of Technology
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