Abstract

Research background: In the era of globalization, there is a need to address decent work deficits in Global Value Chains (GVCs). The forms of working conditions reveal a broad dispersion of contents. The literature review exposes hardly any Europe-focused research assessing the socio-economic impact of global production links and going beyond their pure economic effects assessed in terms of employment, productivity or wages.
 Purpose of the article: This paper investigates how involvement in GVCs affects labor standards. In particular, we assess how the integration into GVCs impacts the probability of having indefinite type of employment contract, which stands for one of the decent work indicator. Moreover, we draw individual and firm-level characteristics determining the type of employment contract.
 Methods: We use linked employer-employee data from the Structure of Earnings Survey merged with industry-level statistics on GVCs based on World Input-Output Database ? the sample is composed of over 5 million workers from 10 Central and Eastern European countries (CEEC) observed in 2014. The involvement into GVCs is measured using a novel approach based on the concepts of global import intensity (GII). We employ logistic regression with robust standard errors.
 Findings & Value added: Controlling for individual and firm-level characteristics (sex, age, education level, length of service in enterprise, size of the enterprise) we find that greater integration into GVCs increases the probability of having temporary type of employment contact, mainly in tradable sectors. However, across CEE countries the relation between GVC and employment type is mixed. In this way we expand the existing literature by reporting the effects of GVCs on labor standards in CEEC.

Highlights

  • The recent decades has brought an increasing evidence on the role of proliferation of Global Value Chains (GVCs1) in shaping the employment relations

  • Based on the model for pooled data, we find determinants which may increase the probability of having temporary type of employment contract

  • Our results are in line with initial expectations and show that greater probability of having temporary type of employment contract is typical for women, younger, less educated workers and with fewer years of occupational experience, which confirms the assumption that this type of employment is predominant among people with lower chances on the labour market (Reichelt, 2014, pp. 558–572)

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Summary

Introduction

The recent decades has brought an increasing evidence on the role of proliferation of Global Value Chains (GVCs1) in shaping the employment relations. The bulk of research analyses the impact of involvement into Global Value Chains on wages and other working conditions related indicators. It turns out, that the majority of research on GVC and working conditions concerns low income countries, while the studies on European countries are rather rare It is not clear, whether the greater inclusion into global production processes results in improvement of quality of work. Recent studies show that the GVC’s related processes like economic upgrading The socio-economic impact of global production links is still empirically not confirmed

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