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Global Supply Chains and Wage Inequality

Author

Listed:
  • Arnaud Costinot
  • Jonathan Vogel
  • Su Wang

Abstract

A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have developed a simple theory of trade with sequential production to shed light on how global supply chains affect the interdependence of nations. In this paper we develop a multi-factor extension of CVW to explore how the emergence of global supply chains may affect wage inequality within countries.

Suggested Citation

  • Arnaud Costinot & Jonathan Vogel & Su Wang, 2012. "Global Supply Chains and Wage Inequality," American Economic Review, American Economic Association, vol. 102(3), pages 396-401, May.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:396-401
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.3.396
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    References listed on IDEAS

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    1. Arnaud Costinot & Jonathan Vogel, 2010. "Matching and Inequality in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 747-786, August.
    2. Arnaud Costinot & Jonathan Vogel & Su Wang, 2013. "An Elementary Theory of Global Supply Chains," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 109-144.
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    Cited by:

    1. Philipp Harms & Jaewon Jung & Oliver Lorz, 2014. "Offshoring and Sequential Production Chains: A General-Equilibrium Analysis," MAGKS Papers on Economics 201402, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Heiwai Tang & Fei Wang & Zhi Wang, 2014. "The Domestic Segment of Global Supply Chains in China under State Capitalism," CESifo Working Paper Series 4797, CESifo Group Munich.
    3. Alexander M. Danzer & Robert Grundke, 2016. "Coerced Labor in the Cotton Sector: How Global Commodity Prices (Don't) Transmit to the Poor," CESifo Working Paper Series 5937, CESifo Group Munich.
    4. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    5. repec:dgr:rugggd:gd-135 is not listed on IDEAS
    6. Philipp Harms & Jaewon Jung & Oliver Lorz, 2017. "Offshoring and Sequential Production Chains: A General Equilibrium Analysis," THEMA Working Papers 2017-25, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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    JEL classification:

    • F1 - International Economics - - Trade

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