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A new sectoral unit labour cost indicator based on global value chains

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  • Martyna Marczak
  • Thomas Beissinger

Abstract

We propose ‘embodied unit labour costs’ (EULC) at the country-sector level as a new cost-related competitiveness indicator. EULC are more comprehensive than standard unit labour cost measures as they incorporate unit labour costs of all domestic and foreign sectors contributing to the final goods production of a specific sector. The contribution is expressed in value-added terms and takes global supply chains into account. Using the World Input-Output Database (WIOD) the concept is illustrated by evaluating the cost competitiveness of German industries.

Suggested Citation

  • Martyna Marczak & Thomas Beissinger, 2022. "A new sectoral unit labour cost indicator based on global value chains," Applied Economics Letters, Taylor & Francis Journals, vol. 29(13), pages 1152-1157, July.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:13:p:1152-1157
    DOI: 10.1080/13504851.2021.1915461
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