Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: LIS Working Paper Series ; No. 680

Classification
Wirtschaft
Empirical Studies of Trade
Trade and Labor Market Interactions
Wage Level and Structure; Wage Differentials
Subject
wage
global value chains
foreign value added
interindustry linkages

Event
Geistige Schöpfung
(who)
Parteka, Aleksandra
Wolszczak-Derlacz, Joanna
Event
Veröffentlichung
(who)
Luxembourg Income Study (LIS)
(where)
Luxembourg
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Parteka, Aleksandra
  • Wolszczak-Derlacz, Joanna
  • Luxembourg Income Study (LIS)

Time of origin

  • 2016

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