Capturing the jobs from globalization: trade and employment in global value chains
Abstract With the steady growth of global value chains (GVCs), each country’s trade now has a more complex relationship with the international division of labor. We decompose the employment effects of a country’s trade into five components, specifically the labour content (1) in exports, (2) in imports, (3) in the import content of exports, (4) in the export content of imports and (5) in intermediates contained in imports. The last three components relate strictly to a country’s participation in GVCs. With the availability of World Input-Output Database (WIOD), we are able to compute the amount of employment generated by each component for 39 countries over 1995-2009. On the aggregate level, final goods trade generated demand for about 538 million jobs in 2009, and GVC trade produced demand for about 88 million jobs. The countries with the greatest GVC-based labour demand are Germany, the US, China, the Netherlands and France. The only emerging developing economy that comes close to them in this respect is China. The countries with the largest positive difference between domestic and foreign labour demand are China, India, Indonesia and Brazil. On the other hand, the countries with greatest negative difference between domestic and foreign labour demand are the US, Germany and Japan. For the full sample in 2009, the import content of exports led to the demand for about 44 million jobs. Third-party intermediates contained in imports generated labour demand of about 39 million jobs. And the export content of imports created demand for about 5 million jobs. Using the data on ‘hours worked by skill type’ in the Social Economic Accounts, we find that, on a global scale, vertical specialization contained significantly more medium-skill and low-skill than high-skill labour content.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Humanities Bridgeford Street, Oxford Road,Manchester, M13 9PL|
Phone: +44(0)7717 881567
Web page: http://www.gdi.manchester.ac.uk/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133, October.
- Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023, October.
- Jiang, Xiao., 2013. "Trade and employment in a vertically specialized world," ILO Working Papers 994855113402676, International Labour Organization.
- Kei-Mu Yi, 2003.
"Can Vertical Specialization Explain the Growth of World Trade?,"
Journal of Political Economy,
University of Chicago Press, vol. 111(1), pages 52-102, February.
- Kei-Mu Yi, 2000. "Can vertical specialization explain the growth of world trade?," Staff Reports 96, Federal Reserve Bank of New York.
- Escaith, Hubert & Lindenberg, Nannette & Miroudot, Sébastien, 2010.
"International Supply Chains and Trade Elasticity in Times of Global Crisis,"
20478, University Library of Munich, Germany.
- Escaith, Hubert & Lindenberg, Nannette & Miroudot, Sébastien, 2010. "International supply chains and trade elasticity in times of global crisis," WTO Staff Working Papers ERSD-2010-08, World Trade Organization (WTO), Economic Research and Statistics Division.
- David L. Hummels & Jun Ishii & Kei-Mu Yi, 1999.
"The nature and growth of vertical specialization in world trade,"
72, Federal Reserve Bank of New York.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
- Gaaitzen De Vries & Neil Foster-McGregor & Robert Stehrer, 2012. "Value Added and Factors in Trade: A Comprehensive Approach," wiiw Working Papers 80, The Vienna Institute for International Economic Studies, wiiw.
- Yuqing Xing & Neal Detert, 2010. "How iPhone Widens the US Trade Deficits with the PRC?," GRIPS Discussion Papers 10-21, National Graduate Institute for Policy Studies.
- Marcel Timmer & Abdul A. Erumban & Reitze Gouma & Bart Los & Umed Temurshoev & Gaaitzen J. de Vries & I–aki Arto & Valeria Andreoni AurŽlien Genty & Frederik Neuwahl & JosŽ M. Rueda?Cantuche & Joseph , 2012. "The World Input-Output Database (WIOD): Contents, Sources and Methods," IIDE Discussion Papers 20120401, Institue for International and Development Economics.
- Sébastien Miroudot & Rainer Lanz & Alexandros Ragoussis, 2009. "Trade in Intermediate Goods and Services," OECD Trade Policy Papers 93, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:bwp:bwppap:ctg-2013-30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rowena Harding)
If references are entirely missing, you can add them using this form.