Integration in Global Value Chains and Employment in Europe

42 Pages Posted: 15 Aug 2019

See all articles by Filippo Bontadini

Filippo Bontadini

University of Sussex - Science Policy Research Unit (SPRU)

Rinaldo Evangelista

University of Camerino

Valentina Meliciani

University of Teramo

Maria Savona

University of Sussex

Date Written: August 1, 2019

Abstract

This chapter aims at revisiting the empirical evidence on the recent trends of countries’ integration in global value chains in Europe. It investigates two potential sources of unbalances that these processes might relate to: (i) the sectoral specialization of the patterns of international fragmentation, whether high technology manufacturing or knowledge intensive services (KIBS); (ii) the occupational categories that have benefited or been penalized by these trends. A rich empirical mapping of these trends in the European countries is provided, based on OECD ICIO and EU ISCO data. The results on the overall and sectoral-specific trends of integration in GVCs and the associated changes in the shares of managers and manual workers show a dual-speed and qualitatively different integration patterns in Europe, with Eastern European (EE) countries rapidly integrating in high tech manufacturing, and the core of western countries strengthening their mutual integration in the KIBS area. Despite the relatively “good quality” integration of EE countries, the evidence does not seem to reveal a mirroring upgrading of employment structures. While this empirical contribution does not attempt to identify causal relationships, the picture provided in the chapter shows that, overall, integration in GVC seems to reproduce and perhaps exacerbate the initial asymmetries in the sectoral and employment structure, with manual workers occupation reducing overall and knowledge intensive occupations concentrating in western Europe.

Keywords: Global value chains, offshoring, KIBS, High-tech manufacturing, employment, skills

JEL Classification: F66, J24

Suggested Citation

Bontadini, Filippo and Evangelista, Rinaldo and Meliciani, Valentina and Savona, Maria, Integration in Global Value Chains and Employment in Europe (August 1, 2019). SWPS 2019-16. Available at SSRN: https://ssrn.com/abstract=3436703 or http://dx.doi.org/10.2139/ssrn.3436703

Filippo Bontadini (Contact Author)

University of Sussex - Science Policy Research Unit (SPRU) ( email )

Brighton, BN1 9SL
United Kingdom

Rinaldo Evangelista

University of Camerino ( email )

Via M. Delle Carceri
Camerino, Macerata 62032
Italy

Valentina Meliciani

University of Teramo ( email )

Campus Coste S. Agostino
Via R. Balzarini 1, Località Colleparco
Teramo, TE 64100
Italy

Maria Savona

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

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