GVC involvement and the gender wage gap: Micro-evidence on European countries

We examine linkages between involvement in global value chains (GVCs) and gender wage inequalities. We use merged data from Structure of Earnings Survey and the World Input Output Database covering 18 European countries. We employ information on employees' personal and company characteristics and a sectoral involvement in GVCs. In general, the wages of workers from sectors more involved in GVCs are lower. However, the relationship between GVC and wages differs according to gender: women are more affected by the negative impact of greater trade involvement than men. There is some education/skill heterogeneity: workers with a medium level of education and medium skills are most affected. Our results show different patterns for concentrated and competitive industries: a greater female wage penalty due to GVC intensification is observed in less competitive sectors. Finally, using the RIF decomposition we differentiate GWG into explained and unex-plained part with GVC being responsible for the latter.

Automated summary

This study examines the linkages between involvement in global value chains (GVCs) and gender wage inequalities. The findings suggest that workers from sectors more involved in GVCs tend to have lower wages. However, the relationship between GVCs and wages varies by gender, with women being more negatively affected by greater trade involvement.