商业研究

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The Effects of Global Value Chain Embeddedness on Wage Growth in China′s Industry

WANG Yu-yan, WANG Ling, ZHAN Pian-pian   

  1. School of Economics, University of Anhui, Hefei 230601, China
  • Received:2017-06-26 Online:2017-10-10

Abstract: The paper uses panel data including 23 industries from 2003 to 2015 to describe the basic trend of wage growth, measure the degree embedding in GVC in China′s industry and empirically test the effect of GVC on wage growth. Evidences show that real wages are on the rise heterogeneously in China′s industry, and the overall wage gap is gradually narrowing between different industries; because of capture and lock from developed countries, the global value chain embeddedness obviously reduces the wage levels and widens wage gap between the industries in China′s industry; there are nonlinear effects of global value chain embeddedness on wage levels and wage gap between the industries as a result of the existence of breakthrough leap effect. Besides, the raise of R&D can enhance the total wages and widen the wage gap between the industries to some extent;the deepening of capital and enhancement of real output can not only enhance the wage levels of the industry, but also narrow the wage gap between the industries. These innovative results are propitious to reacquaint the popular viewpoint that global value chain embeddedness only promote or reduce wage levels in China, and provide disruptive enlightenment to the reform of China′s labor market in the context of the gradual loss of labor advantage.

Key words: global value chain, wage levels, wage gap, double effect, panel data of industry