Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland

A B S T R A C T Objective: This article relates to recent literature on labour market consequences of production fragmentation within Global Value Chains, analysed in the presence of workers’ heterogeneity and differences in the task content of jobs. The main aim is to assess if there is a relation...

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Main Author: Aleksandra Parteka
Format: Article
Language:English
Published: Cracow University of Economics 2018-06-01
Series:Entrepreneurial Business and Economics Review
Subjects:
Online Access:https://eber.uek.krakow.pl/index.php/eber/article/view/354
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author Aleksandra Parteka
author_facet Aleksandra Parteka
author_sort Aleksandra Parteka
collection DOAJ
description A B S T R A C T Objective: This article relates to recent literature on labour market consequences of production fragmentation within Global Value Chains, analysed in the presence of workers’ heterogeneity and differences in the task content of jobs. The main aim is to assess if there is a relationship between wages of Polish workers and the degree of Polish production dependence on imported inputs. Research Design & Methods: Using microdata from EU-SILC on workers from Poland observed in 2008-2014, we estimate a Mincerian model, augmented by a measure of task content of occupations and the industry level index of the import intensity of production computed with input-output data and accounting for good’s production sequence). IV estimation is employed to account for potential endogeneity between the import intensity of production and wages. Findings: Regression results suggest that negative relationship between wages of Polish workers and the dependence of their sector of employment on foreign inputs is magnified by the routinisation level of the occupation. Hence occupation-specific task requirements play a role. Implications & Recommendations: It implies that not all the Polish workers are affected in the same. The movements towards jobs with higher degree of non-routine content could protect against negative wage effects of fragmentation. Contribution & Value Added: The relationship between wages in Poland and the reliance on foreign inputs and GVCs links has not yet been studied from the micro-level task-based perspective. This article fills in this gap.
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spelling doaj.art-3284dda443ab407393c02da91dbbb4942022-12-22T01:09:02ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-883X2353-88212018-06-0162718910.15678/EBER.2018.060204354Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for PolandAleksandra Parteka0Gdańsk University of TechnologyA B S T R A C T Objective: This article relates to recent literature on labour market consequences of production fragmentation within Global Value Chains, analysed in the presence of workers’ heterogeneity and differences in the task content of jobs. The main aim is to assess if there is a relationship between wages of Polish workers and the degree of Polish production dependence on imported inputs. Research Design & Methods: Using microdata from EU-SILC on workers from Poland observed in 2008-2014, we estimate a Mincerian model, augmented by a measure of task content of occupations and the industry level index of the import intensity of production computed with input-output data and accounting for good’s production sequence). IV estimation is employed to account for potential endogeneity between the import intensity of production and wages. Findings: Regression results suggest that negative relationship between wages of Polish workers and the dependence of their sector of employment on foreign inputs is magnified by the routinisation level of the occupation. Hence occupation-specific task requirements play a role. Implications & Recommendations: It implies that not all the Polish workers are affected in the same. The movements towards jobs with higher degree of non-routine content could protect against negative wage effects of fragmentation. Contribution & Value Added: The relationship between wages in Poland and the reliance on foreign inputs and GVCs links has not yet been studied from the micro-level task-based perspective. This article fills in this gap.https://eber.uek.krakow.pl/index.php/eber/article/view/354import intensity of productionglobal value chainsproduction fragmentationwagestasks
spellingShingle Aleksandra Parteka
Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
Entrepreneurial Business and Economics Review
import intensity of production
global value chains
production fragmentation
wages
tasks
title Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
title_full Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
title_fullStr Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
title_full_unstemmed Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
title_short Import Intensity of Production, Tasks and Wages: Micro-Level Evidence for Poland
title_sort import intensity of production tasks and wages micro level evidence for poland
topic import intensity of production
global value chains
production fragmentation
wages
tasks
url https://eber.uek.krakow.pl/index.php/eber/article/view/354
work_keys_str_mv AT aleksandraparteka importintensityofproductiontasksandwagesmicrolevelevidenceforpoland