Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/169240 
Year of Publication: 
2016
Series/Report no.: 
LIS Working Paper Series No. 680
Publisher: 
Luxembourg Income Study (LIS), Luxembourg
Abstract: 
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.
Subjects: 
wage
global value chains
foreign value added
interindustry linkages
JEL: 
F14
F16
J31
Document Type: 
Working Paper

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