The Impact Of Global Value Chain Position On Wages

The rise and fall of a country depend on its control or participation in the global economy.With abundant and cheap labor resources,China has rapidly integrated into the global value chain system and occupied a place in the middle and low-end manufacturing links of the global value chain,becoming a "world factory" and the world's largest exporter of goods trade.But when enjoying the blessings of the global value chain,the hidden challenges and threats cannot be ignored.At present,there are few studies on the impact of global value chain status on employees' wages at the enterprise level.Therefore,it is of great significance to study the impact of Chinese enterprises' position in the global value chain on their employees' wages.This paper makes use of the data of China industrial enterprise database,China customs database and world input-output table from 2000 to 2006.Firstly,the customs data is matched with the world input-output table data,then the global value chain status index of Chinese enterprises is calculated,and then the panel fixed effect method is used to study the impact of the global value chain status of Chinese enterprises on their wage level.On this basis,this paper tests the robustness from four aspects: the time lag effect of wage change,the change of global value chain status indicators,the re selection of samples and the handling of outliers,and further distinguishes the trade mode,region and ownership of export enterprises for heterogeneity test.The main conclusions of this paper are as follows:(1)compared with Chinese enterprises engaged in global value chain processing and manufacturing,the wage level of Chinese enterprises at both ends of the global value chain is lower;(2)whether Chinese enterprises participate in the global value chain in the long term or in the short term,there is a positive role in improving the wage level;(3)Chinese enterprises in the eastern region,engaged in The "inverted U" pattern between the global value chain status of general trading Chinese enterprises and the wage level of their employees is more significant;(4)the wage system of state-owned enterprises cannot match the supply and demand changes of the labor market,nor its position in the global value chain.Based on the above conclusions,this paper proposes that Chinese enterprises should strive to join the division of global value chain industry.