• Does Global Value Chain Engagement Improve Firms' Wages:The Empirical Evidence from China

    4 days ago - By The World Economy

    Abstract
    Better understanding of the effect of the global value chain on wages is a key issue for determining welfare gains from engagement in international integration. We study whether and how China's engagement in the GVC enhances firms' wage by using firm‐level and customs transaction‐level data covering the period 2000-2006 with the methods of propensity score matching , difference in differences , and generalized propensity score. The empirical results show that first, GVC engagement can improve firms' wage. Second, the improvement effect is more prominent in capital‐intensive and...
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