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Linking jobs in global supply chains to demand

Author

Listed:
  • Kizu, Takaaki.
  • Kühn, Stefan.
  • Viegelahn, Christian,

Abstract

In its recent World Employment and Social Outlook, the ILO published estimates of the number of jobs related to global supply chains (GSCs) for 40 countries in 1995–2013. This paper provides a detailed description of the methodology that was used for the estimation and documents the links between GSC-related jobs and demand. The paper shows evidence on the number of jobs supported by demand in different export destinations and analyzes the number of GSC-related jobs in different country groups. In particular, we find evidence for the changing role of China, from a country in which GSC-related jobs are located to a country whose import demand creates these jobs elsewhere. We also show that production linkages between emerging economies create an increasing number of jobs. When focusing on jobs related to manufacturing GSCs, trends in GSC-related jobs reveal the increasing importance of the services sector. Finally, we conduct a sectoral regression analysis and provide evidence that increased GSC participation of a sector as a supplier can be associated with a drop in the wage share. We show that this result holds regardless of whether advanced or emerging economies are the final export destination, where demand originates.

Suggested Citation

  • Kizu, Takaaki. & Kühn, Stefan. & Viegelahn, Christian,, 2016. "Linking jobs in global supply chains to demand," ILO Working Papers 994934992802676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994934992802676
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    Cited by:

    1. Harald Oberhofer & Christian Glocker & Werner Hölzl & Peter Huber & Serguei Kaniovski & Klaus Nowotny & Michael Pfaffermayr & Monique Ebell & Nikolaos Kontogiannis, 2016. "Single Market Transmission Mechanisms Before, During and After the 2008-09 Crisis. A Quantitative Assessment," WIFO Studies, WIFO, number 59156, April.
    2. Stefan Kühn & Christian Viegelahn, 2017. "Foreign trade barriers and jobs in global supply chains," Working Papers 1705, Council on Economic Policies.

    More about this item

    Keywords

    value chains; employment; wages; productivity; location of industry; labour statistics; statistical method; statistical analysis;
    All these keywords.

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