We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Global Value Chain Participation and the Relative Demand for Skilled Labour in East Asia

Global Value Chain Participation and the Relative Demand for Skilled Labour in East Asia
14 February 2020
Deborah Winkler
East Asia, global value chains, Labour and Migration, Regulation and Governance, Trade

Print Article:

Global value chains (GVCs) may have distributional consequences for the relative demand for skilled labour. This study relates GVC participation to the share of skilled labour in total compensation, focusing on the experience of 12 East Asian countries. It applies a macro-level analysis covering 114 countries and 27 sectors for intermittent years from 2001 to 2011. It uses a widely accepted measure of backward GVC participation – the share of foreign value added in exports.
This study finds that while GVC participation is positively associated with the relative demand for skilled labour in the global data set, the positive correlation is smaller for the sample of East Asian countries and negative in a few cases. This could reflect East Asia’s specialisation in manufacturing GVCs, which tend to make intensive use of lower-skilled labour. In agriculture, the direction of the correlation depends on a country’s position in the agribusiness value chain and its skill intensity, while the results for services do not show any statistically significant correlations. Finally, the study assesses if policy matters for the relationship between backward GVC participation and the relative demand for skilled labour, and finds that higher labour market flexibility increases the positive relationship.

Global Value Chain Participation and the Relative Demand for Skilled Labour in East Asia

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Startup, Startup Policy, Digital Economy, Innovation, Technology
2 April 2024
Editor(s)/Author(s): Mahirah Mahusin, Hilmy Prilliadi, Satria Mahesya Muhammad
Over the last decade, tech startups have emerged as drivers of[...]
Energy, EV, Electric Vehicle, EV battery, ASEAN
28 March 2024
Editor(s)/Author(s): Naoko Doi, Alloysius Joko Purwanto, Shigeru Suehiro, Soichi Morimoto, Akira Takamine, Yasuo Kawada, Koichi Sasaki, Yuhji Matsuo
In East Asia Summit (EAS) countries, recent progress in electrifying the transport sector[...]