The Study Of The Impact Of Embedded Global Value Chain On Skilled Labor Wage Gap In China

With the deepening development of economic globalization,fundamental changes have taken place in the form of trade between countries.The explosive growth of the volume of intermediate goods has led to the collapse of traditional trade borders and the formation of vertical specialization.Scholars have done a lot of research on how this phenomenon of cross-border dispersion of production processes affects national trade patterns,and then affects a country’s domestic economic structure and distribution methods.After the reform and opening up,China has fully integrated into the global value chain,and based on its comparative advantages,has participated in one or more production links of the production chain,and various industries have achieved rapid development.At the same time,due to differences in factors such as factor endowments,openness,and industry policies,participation in international divisions of labor has different effects on wage gaps for workers with different skills.Based on the research on how a country’s embedded global value chain affects the vertical specialization model and the world income distribution model proposed by Costinot et al(2013),this paper first uses the production decomposition model proposed by Wang et al(2017a,2017b)The index analyzes the basic situation of China’s embedded global value chain,and studies how integration into the global value chain affects the wage gap between high-and low-skilled workers.The first part introduces the research background,studies the significance of this problem,and summarizes the current research results at home and abroad.Based on this,the research methods and innovations and deficiencies in this paper are proposed.The second part analyzes China’s global value chain embedded position,the complexity of participation,the degree of forward and backward participation,the overall skill wage gap,and the skills of different industries from the perspective of global value chain participation and the gap between skilled labor and wages.Wage gap situation.The third part constructs a sequential production model and a free trade equilibrium model,and analyzes,from a theoretical perspective,the impact of embedded global value chains on a country’s vertical specialization model and the international wage gap model.The fourth part builds an econometric model,using data from 30 industries from 1995 to 2009 to conduct an empirical study on the impact of embedded global value chains on the skilled labor wage gap.The last part introduces the research conclusions and makes policy recommendations.The study found that all industries in China have been fully integrated into the global value chain,and the position of global value chain embedding,the degree of forward embedding,and the degree of backward embedding have continued to increase.During the participation process,the proportion of simple GVC activities decreased,the number of production stages increased,and production Complexity increases.At the same time,the wage gap between high-and low-skilled workers has experienced a slight decline.The improvement of the embedded position and complexity index of the global value chain has reduced the skill labor wage gap,and the increase in the level of participation has widened the skill labor wage gap.It is found through industry regression that this impact is still significant.Therefore,in the process of integrating into the global value chain,we should increase investment in scientific and technological innovation and human capital,increase the value-added rate,obtain more division of labor benefits,promote the upgrading of economic development methods,and gain momentum for sustainable development.