Social upgrading within GVCs. An institutional perspective - Publikacja - MOST Wiedzy


Social upgrading within GVCs. An institutional perspective


Research Background: Collective bargaining is one key aspect in industrial relations which shapes the current labour market. At the same time, the process of production fragmentation embodied in global value chains (GVCs) has dominated the international trade related literature. One of the key implications studied and discussed in the literature is the impact of production fragmentation processes on wages, which, in turn, are indicated as one of the measure of worker’s social upgrading. Purpose of the paper: The main goal of this study is to examine the association between the GVC involvement and wage changes, controlling for collective bargaining schemes. In particular, we aim to investigate, whether the institutional environment, reflected in the forms of wage coordination, plays a relevant role in explaining the linkages between GVC ties and wages in different countries. Methodology/Methods/Data sources: We use a rich employee-employer database containing data from the European Structure of Earnings Survey (SES) for selected European countries, which we match with sectoral data from World Input-Output Database (WIOD) and country level institutional data from database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts (ICTWSS). GVC involvement is presented by the novel measures of global import intensity and upstreamness. The sample proves to be a good basis for testing traditional and heterogeneous firm theories of international trade. The relationship between wages and worker’s individual characteristics, company features, sectoral data as well as country variables is examined by the use of regression analysis. Findings: Our results show the main channel through which involvement in global value chains is associated with wages. Predominantly, in sectors more engaged in the global production links the wages tend to be lower. However, taking into account the institutional factors proxied by the collective bargaining scheme, we find that this association is mainly observed in countries with centralized wage settings scheme. The extended analysis reported in this study supports and reinforces the view that a comprehensive investigation of the main determinates of wages requires a multifaceted approach.

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Aktywność konferencyjna
publikacja w wydawnictwie zbiorowym recenzowanym (także w materiałach konferencyjnych)
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Opis bibliograficzny:
Szymczak S.: Social upgrading within GVCs. An institutional perspective// / : , 2020,
Źródła finansowania:
Politechnika Gdańska

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