Wage Effect In The GVC Enterprises Of China

The global value chain is a significant symbol of the current world economic development pattern.China has shared a huge globalization dividend through its participation.However,there are relatively few studies on the wages of firms involved in global value chains.Wage plays a fundamental role in the overall income of the residents.Raising wage income is relative to the people's livelihood and equity.Therefore,studying whether the global value chain participation has the effect of raising the wage level is very important for policy formulation adjustment and crossing the middle income trap under the background of global value chain.Through the literature review,this article summarizes the internal mechanism of firms participating in the global value chain to promote the wage level.Using the matching data of the Chinese Custom Database and the Industrial Enterprise Database from 2000 to 2006,it measures whether the enterprises participate in the global value chain,differentiates the global value chain enterprises,general export enterprises and non-export enterprises,and compares the wage levels of the three.Taking the enterprises participating in the global value chain continuously from 2000 to 2006 as the experimental group,using the propensity score matching method,taking the enterprise scale,production efficiency and innovation ability as matching covariates,we constructed the treatment group and experimental group without systematic difference data.Using the difference-in-differences model and the treatment effect model,we studied the wage effect in the global value chain through panel fixed effect regression,and combined all aspects of the enterprise for further analysis.The data analysis and empirical results show that:(1)Generally,GVCs have higher wage levels than export firms in the same period;(2)The participation of firms in the global value chain has a positive effect on the wage level;(3)The wage effect has a certain time lag.Compared with the effect of rising wage levels,firms that have long been involved in the global value chain are stronger than those that have short-term participation.(4)Analyzed from the perspective of regional and ownership structure,the wage premium effect of the eastern and central firms and foreign-funded firms participating in GVCs is more obvious.(5)From the industrial level of different technology content,participation in the global value chain division of labor is more obvious for technology-intensive firms.Based on the above conclusions,this paper proposes that firms should actively participate in the global value chain,and put forward some policy recommendations to promote the wage level of the firm according to the heterogeneity of the firms.