Impact of global value chains on wage inequality and social upgrading

This study aims to examine the effects of integration with Global Value Chains (GVCs) on female employment and gender-based wage inequality using a cross country panel data analysis. The first research question of the study is whether integration with GVCs increases female employment. The study's second research question is whether the impact of integration with the GVCs on women's employment varies at the sectoral level. The third research question of the study is whether integration with GVCs reduces the gender-based wage gap. In response to the first two research questions, the effects of GVCs on women's employment were examined both at the overall level of female employment and female employment at sectoral levels—agriculture, manufacturing, and services to observe sectoral differences. Total female employment and sectoral female employment equations were estimated for 2008-2020 using panel data analysis for different female employment indicators and GVCs integration indicators . Regarding the third research question, the gender-based wage inequality equation was estimated for 2008-2020 using panel data analysis. According to the estimation results, integration with GVCs positively affects export-included female employment only through increased participation in GVCs. On the other hand, increased participation in GVCs has no effect on the elimination of gender based wage inequality. Moreover, increased participation in GVCs leads to a decrease in the female labour force participation rate and female employment rate. All these results imply that increased participation in GVCs does not have an overall positive impact on women's social upgrading.