Global value chain participation and income inequality within enterprises: An empirical study based on Chinese-listed companies

Abstract

In the debate about the causes of inequality, a growing strand of research focuses on the effects of globalization on income inequality. This study focuses on Chinese-listed companies from 2000–2016, examining the influence of GVC participation on intra-firm wage disparities. It finds a significant, non-linear inverted U-shaped relationship between GVC participation and wage inequality, which remains robust across various empirical specifications. The results also show that global value chain embedding has a more significant impact on income inequality within non-state-owned enterprises, larger enterprises, and enterprises with higher bargaining power among employees. This finding is qualitatively robust across various different empirical specifications.