Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282637 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16510
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper studies the relationship between global value chain (GVC) participation, worker-level routine task intensity, and wage inequality within countries. Using unique survey data from 38 countries, we find that higher GVC participation is associated with more routine-intensive work, especially among workers in offshorable occupations. This relationship is particularly strong in industry and in countries at lower development levels. As higher routine task intensity links with to wages, this indirectly widens within-country wage inequality. However, GVC participation directly contributes to reduced wage inequality, except in the richest countries. Overall, GVC participation is negatively associated with wage inequality in most low- and middle-income countries that receive offshored jobs, and positively in high-income countries that offshore jobs.
Subjects: 
routine task intensity
global value chains
globalisation
cross-country division of work
wage inequality
JEL: 
J21
J24
J31
F66
Document Type: 
Working Paper

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