Global Value Chains in India and Their Impact on Gender Wage Disparity

Abstract

Trade across countries in the world has assumed a new dimension with the emergence of global value chains (GVCs). GVCs are associated with trade in intermediate parts and components being processed and assembled in multiple countries. The current article analyses the impact of India’s participation in GVCs on the wage gap between male and female workers. Dearth of studies exploring this issue in the Indian context is a motivation for the current research. India’s participation in GVCs is measured by two indicators—domestic value added in intermediate goods as a share of gross exports (DVAXINT) and foreign value-added share of gross exports (FVAX). Both pooled and panel regression analyses based on secondary sources of data suggest that none of the indicators of GVCs have been helpful in improving the relative wages of female workers in India. JEL Codes: C33, F14, F16, F23