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Within- and between-firm wage inequalities and trade integration in GVC

Abstract

This paper examines between- (inter) and within- (intra) firm wage inequality using rich employer-employee data for 12 European countries. We confirm that much overall wage inequality is observed within sectors and within occupations. The share of the within- and between-firm components in overall wage inequality varies across countries. We estimate the link between involvement in global value chains (GVCs) and wages differentiating into the within- and between-firm components and test the hypothesis that there is a different effect of GVCs on wages depending on the position in a value chain (close to or far from the final demand). The results indicate that the between-firm wage component is the main channel through which involvement in global value chains is materialised. However, the exact sign of the relationship between GVC growth and wages (conditioned on upstreamness) is country-heterogeneous albeit its marginal economic significance.

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Details

Category:
Articles
Type:
artykuły w czasopismach
Published in:
Journal of International Trade & Economic Development no. 31, pages 1199 - 1223,
ISSN: 0963-8199
Language:
English
Publication year:
2022
Bibliographic description:
Wolszczak-Derlacz J., Nikulin D.: Within- and between-firm wage inequalities and trade integration in GVC// Journal of International Trade & Economic Development -Vol. 31,iss. 8 (2022), s.1199-1223
DOI:
Digital Object Identifier (open in new tab) 10.1080/09638199.2022.2071456
Sources of funding:
Verified by:
Gdańsk University of Technology

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