Wage effects of global value chains participation and position: An industry-level analysis¹

We examine how participation and positioning in global value chains (GVC) affect wages. also whether this relationship is conditioned by a country’s development level labor market regulation. The results show that upstream specialization GVCs are associated with higher wages but only developed countries. In developing countries, while GVC wages, exerts downward pressure on For analysis focusing the role of regulation, we find positive effect under stringent Under flexible conditions, it allows for effective reallocation workers into knowledge-intensive high added activities chain more productive wage rewarding. Additional effects along distribution across all segments benefits earners make low-wage worse-off. Even when lower segments, low disproportionately affected.