occupations in the industrial (column 1) and business services (column 3) sectors, but not in other services (columns 5 and 6).

Table 3. The relationship between RTI, GVC participation, and wages, by sector and occupation type, standardized

|Dependent variable: worker-|Indu|stry|Business|services|Other s|ervices|
|---|---|---|---|---|---|---|
|level wages|(1)|(2)|(3)|(4)|(5)|(6)|
||Non-<br>offshorable|Offshorable|Non-<br>offshorable|Offshorable|Non-<br>offshorable|Offshorable|
|Routine Task Intensity (RTI, std)|-1.646***|-1.704***|-1.593***|-2.116***|-1.514***|-1.206***|
||(0.147)|(0.206)|(0.109)|(0.238)|(0.101)|(0.247)|
|Backward GVC participation|0.134|0.141|0.394**|-0.589*|0.712|0.089|
|(GVCB) share in exports (std.)|(0.165)|(0.167)|(0.186)|(0.300)|(0.558)|(0.913)|
|GVCB share (std.) * [Ln(GDP pc)|0.084|0.045|0.127|-0.196|0.519|1.182**|
|–mean(Ln(GDP pc)]|(0.059)|(0.074)|(0.080)|(0.133)|(0.391)|(0.552)|
|Forward<br>GVC<br>participation|0.404***|-0.146|0.761***|0.123|-0.010|0.595|
|(GVCF) share in exports (std.)|(0.147)|(0.100)|(0.140)|(0.193)|(0.371)|(0.516)|
|GVCF share (std.) * [Ln(GDP pc)|0.265***|-0.002|0.338***|-0.165|-0.166|-1.109***|
|–mean(Ln(GDP pc)]|(0.058)|(0.047)|(0.077)|(0.129)|(0.161)|(0.231)|
|Ln(GDP<br>per<br>capita)<br>–|0.268*|0.440**|-0.017|0.446**|0.198|-0.061|
|mean(Ln(GDP per capita))|(0.157)|(0.205)|(0.106)|(0.195)|(0.668)|(0.717)|
|Observations|18,647|7,600|38,659|6,714|31,523|2,091|

Note: ***p < 0.01, **p < 0.05, *p < 0.1. Standard errors in parentheses. Standardized weights are used that give each country equal weight. The standard errors are clustered at a sector × country level. Measures for GVCB share and GVCF share are standardized. All regressions include controls for technology (computer use, computer use squared), skills, education, age, gender, sector FE, and country FE. The wage data for Canada, China, Hungary, Macedonia (FYROM), Peru, Serbia, Singapore, Sweden, and Türkiye are unavailable; therefore, these countries are excluded from the sample. Source: Authors’ calculations based on PIAAC, STEP, CULS (tasks), World Bank (GDP), EORA data, and Borin and Mancini (2015, 2019) (GVC participation measures).

At the same time, the relationship between GVC participation and wages is significant only in some types of occupations and sectors. First, higher forward GVC participation is associated with higher wages among workers in non-offshorable occupations in the industrial and business services sectors. This could indicate high value-added tasks such as R&D upstream in GVCs which are more difficult to offshore and thus pay high wages. Second, more backward GVC participation is associated with higher wages only in business services – positively in non-offshorable occupations, and negatively in offshorable occupations.

Due to the unavailability of wage data, we had to exclude Canada, China, Hungary, Macedonia (FYROM), Peru, Serbia, Singapore, Sweden and Türkiye from the previous analysis. Table 4 thus replicates the results of Table 2 for the reduced country sample when assessing the relationship between GVC participation and RTI. The estimated coefficients shown in Tables 2 and 4 differ slightly. Still, the findings are the same: more backward and forward GVC participation are associated with higher RTI among workers in offshorable occupations in the industrial sector, especially for countries at the average development level in our sample, but with a lower RTI among workers in non-offshorable occupations in business services (Table 4).

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