The Embedded Position Of Global Value Chains And Wage Gap

Under the background of the continuous expansion and deepening of the international production network,the refinement and depth of the Global Value chains division has become an important feature of globalization.At the same time,the problem of income disparities has posed a direct threat to the globalization process.Does globalization have an impact on the distribution of labor factor income in different countries?Taking the embedded position of a country in the Global Value Chain as the angle of view,this paper investigates the impact of globalization on the wage gap of labor factors and its mechanism by using cross-border cross-industry panel data.In this dissertation,the input-output table(WIOT)and the Social Economic account(SEA)from the xworld input-output database(WIOD)are used in the 1996-2009,respectively,to calculate the downstream index of each country's industry in the Global Value Chains and the wage gap between the high and low skilled labor factors within the industry.This paper analyzes the theoretical mechanism of the influence of the embedding position of Global Value Chains on the xwage gap between high skilled and low skilled labor,and investigates the mediating effect of value-added ratio as a mediator variable.This dissertation are made up of five chapters.Chapter 1 is introduction,which states the background,purpose and significances of the topic,research ideas and methods,as well as the innovation points of the text.Chapter 2 is the literature review,which briefly reviews the relevant important literatures about the embedded position of Global Value Chains and wage gap.In Chapter 3,we investigate the theoretical mechanism of embedded position on wage gap through the labor structure demand within the industry.Chapter 4 is divided into four sections:the first section is the index calculation and descriptive analysis,namely the embedded position of Global Value Chains,the wage gap within the industry,the selection of control variables and the descriptive statistics of variables,the distribution of scatter plot,etc.In the second section,we conduct an empirical model.The third section are empirical analysis,to examine the effect of the Global Value Chains embedding position on the wage gap,and to test the hypothesis.The fourth section is the summary of chapter 4.Chapter 5 summarizes this dissertation,which consists of the main conclusion,policy implications and the further research directions.After theoretical and empirical analysis,the major results can be concluded as follows:the closer to final demand,the bigger wage gap between high-skilled and low-skilled labor,due to the bigger proportion of high-skilled labor and smaller proportion of low-skilled labor.Further,the embedded position in GVCs changes demand stucture of labor measured by value-added ratio,thus changing the relative wage gap.After taking into account the different indicators and endogeneity,the above conclusions are still robust.In addition,we develop a mediation model with value-added ratio as a mediator variable.The policy implication is that it should focus on the industry closer to final demand to get a higher value-added ratio in the process of industrial upgrading,but the government should pay attention to wage gap,which emphasizes higher education and more training.