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Functional specialisation and working conditions in Europe

Author

Listed:
  • Stöllinger, Roman
  • Leitner, Sandra M.
  • Zavarska, Zuzana

Abstract

Specialisation in value-chain functions is one of the new phenomena introduced by global value chains and holds great potential for productivity gains. The advantages of global value chain integration, however, could be potentially countered by unfavourable functional specialisation. This study shows that functional specialisation in production activities ('fabrication') tends to hold back wages. For Central and East European EU member states, a specialisation as 'factory economies' could thus become a development trap.

Suggested Citation

  • Stöllinger, Roman & Leitner, Sandra M. & Zavarska, Zuzana, 2023. "Functional specialisation and working conditions in Europe," Working Paper Forschungsförderung 284, Hans-Böckler-Stiftung, Düsseldorf.
    • Handle: RePEc:zbw:hbsfof:284
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    Cited by:

    1. Roman Stöllinger, 2023. "Von verlängerten Werkbänken und Headquarter-Ökonomien: Die Bedeutung funktionaler Spezialisierung in EU-Wertschöpfungsketten für die Lohnentwicklung," wiiw Policy Notes 70, The Vienna Institute for International Economic Studies, wiiw.
    2. Federico Riccio & Lorenzo Cresti & Maria Enrica Virgillito, 2025. "The labour share along global value chains: perspectives and evidence from sectoral interdependence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(2), pages 635-684, May.

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    Keywords

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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