Patterns in global value chains: Integration, technology and employment structures in Europe. Country and sectoral evidence

68 Pages Posted: 25 Oct 2021

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

SPRU, University of Sussex; Department of Economics and Finance, Luiss University

Date Written: October 22, 2021

Abstract

This paper provides empirical evidence on the relationship between patterns of integration in global value chains (GVCs), the ‘quality’ of such integration in terms of technological capabilities and the structure of employment in European countries and sectors. We study employment shares in fabrication and headquarter occupations in terms of functional specialisation and employment upgrading, making two specific contributions.

First, we explicitly account for pre-existing asymmetries in employment structure. Second, we account for the complex role of technology both in terms of country-industries’ own initial technological intensity and that of their GVC partners. To achieve this we blend data on employment, trade in value added, patents and intangible asset stocks, for the period 2000-2014. We find that such pre-existing asymmetries are highly persistent over time with little sign of convergence in employment structure over our observed period.

Furthermore GVC participation is not related, in and of itself, to changes in employment structure. However, this relationship appears to be mediated by country-industries’ initial technological position. Technological leaders exhibit greater shares of employment in headquarter functions as they increase their integration in GVCs; in contrast country-industries that start off as technological laggards see further integration in GVCs alongside an increase in the share of employment in fabrication functions.

Keywords: value chains ; employment ; industrial sector ; technology ; globalization ; EU countries

Suggested Citation

Bontadini, Filippo and Evangelista, Rinaldo and Meliciani, Valentina and Savona, Maria, Patterns in global value chains: Integration, technology and employment structures in Europe. Country and sectoral evidence (October 22, 2021). ETUI Research Paper - Working Paper 2021.10, Available at SSRN: https://ssrn.com/abstract=3947682 or http://dx.doi.org/10.2139/ssrn.3947682

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

SPRU, University of Sussex ( email )

Brighton, BN1 9SL
United Kingdom

HOME PAGE: http://https://profiles.sussex.ac.uk/p100780-maria-savona

Department of Economics and Finance, Luiss University ( email )

Viale Romania 32
Rome, 00197
Italy

HOME PAGE: http://https://economiaefinanza.luiss.it/docenti/cv/354059

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
35
Abstract Views
227
PlumX Metrics