Global Supply Chains and Wage Inequality
American Economic Review
vol. 102,
no. 3, May 2012
(pp. 396-401)
Abstract
A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have developed a simple theory of trade with sequential production to shed light on how global supply chains affect the interdependence of nations. In this paper we develop a multi-factor extension of CVW to explore how the emergence of global supply chains may affect wage inequality within countries.Citation
Costinot, Arnaud, Jonathan Vogel, and Su Wang. 2012. "Global Supply Chains and Wage Inequality." American Economic Review, 102 (3): 396-401. DOI: 10.1257/aer.102.3.396JEL Classification
- J31 Wage Level and Structure; Wage Differentials
- L14 Transactional Relationships; Contracts and Reputation; Networks
- M11 Production Management
- F16 Trade and Labor Market Interactions
- F23 Multinational Firms; International Business