An Empirical Study On The Impact Of Global Value Chain Embedment On China's Labor Demand

This paper uses the 2001-2013 "China Industrial Enterprise Database" and "China Customs Import and Export Trade Database" to merge data,and at the micro level,we measures the degree of enterprise embedded in the global value chain,empirically we studies the effect of the global value chain embedment on China's labor demand and the labor structure.The results show that global value chain embedment has a significant stimulating effect on labor demand,especially for GVC of intermediate goods exports model compared to final product exports model.The diversified-products strategy can help increase labor demand more than the single-product strategy obviously.The impact of value chain embedment on the structure of labor demand varies according to the embedment method,industry characteristics and ownership characteristics of the enterprise.Among them: the embedment by exporting intermediate products will increase the relative demand of skilled labor,and embedment by exporting the final products will reduce the relative demand of skilled labor.The value chain embedment by importing intermediate products will replace skilled labor in high-tech industry which will decrease the relative demand of skilled labor,and this phenomenon will be more obvious in non-state-owned enterprises,but the impact of value chain embedment on labor skill demand structure is not significant in low-tech and medium-tech industry.The above conclusions mean that both the enhancement of the global value chain embedment degree and the optimization of the value chain embedment method are essential for creating labor demand and improving the workforce structure.