Labour demand in global value chains: Is there a bias against unskilled work?

Rodrik (2018) hypothesises that technology used in global value chains (GVCs) is biased against the use of unskilled workers. To test this hypothesis, we introduce a GVC production function which final output produced by means factor inputs from all countries participate GVC. In contrast, previous studies only consider one stage using single country. We derive substitution elasticities and labour demand bias system translog cost equations. find technical change GVCs was strongly low-educated workers, neutral for middle-educated workers favour high-educated show biases moderate potential to increase low-income countries.