at a similar level (12-14%), the positive association between backward GVC participation and the RTI is stronger in Ecuador, due to the interaction term with GDP per capita.

Table 1. The relationship between GVC participation and RTI, total and by occupation type, standardized

|Dependent variable: worker level RTI|(1)<br>All<br>workers|(2)<br>Non-<br>offshorable|(3)<br>Offshorable|
|---|---|---|---|
|Backward Global Value Chain participation (GVCB) share in exports||||
|(std.)|0.004|-0.016|0.079***|
||(0.019)|(0.020)|(0.024)|
|GVCB share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|0.017|0.027|-0.054*|
||(0.029)|(0.030)|(0.032)|
|Forward Global Value Chain participation (GVCF) share in exports||||
|(std.)|0.019*|0.011|0.053***|
||(0.010)|(0.011)|(0.014)|
|GVCF share (std.) * [Ln(GDP pc) –mean(Ln(GDP pc)]|-0.060***|-0.059***|-0.074***|
||(0.012)|(0.013)|(0.017)|
|Ln(GDP per capita) –mean(Ln(GDP per capita))|0.033|0.041|-0.014|
||(0.038)|(0.038)|(0.060)|
|Observations|167,034|144,914|22,120|

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), FDI, skills, education, age, gender, sector FE, and sector FE interacted with GDP per capita.

Source: Authors’ calculations based on PIAAC, STEP, CULS (tasks), World Bank (GDP), EORA data and Borin and Mancini (2015, 2019) (GVC participation measures).

# c. Sector-specific regression results

Next, we study differences between broad sectors by estimating regressions for specific subsamples. We distinguish three broad sectors – industry (B-F ISIC rev. 4 sections), business services (G-N ISIC rev. 4 sections), and other services (O-S ISIC rev. 4 sections). For details, see Table A2 in Appendix A.

For the industrial sector, we find no correlation between backward GVC participation and RTI. In contrast, a higher forward GVC participation is linked to more routine tasks, although decreasing with development level (Table 2, Panel A, column 1). We also find no correlation between backward and forward GVC participation and the RTI among non-offshorable occupations (Table 2, Panel A, column 2). Both these patterns are consistent with the overall results for all sectors (Table 1). However, in the case of offshorable occupations, the higher the backward GVC participation is in a country and sector, the higher the workers’ RTI (Table 2, Panel A, Column 3). We also find a positive association between forward GVC participation and RTI among workers in offshorable occupations (Table 2, panel B, column 3), again confirming the pooled sample’s results (Table 1).

However, a negative interaction term of GVC participation with GDP per capita in industrial sectors suggests that the development level counterbalances this relationship. In contrast to the overall results (Table 1), this interaction term is insignificant for backward GVC participation. Hence, workers in industrial sectors and countries specialized in smaller segments of GVC (e.g., assemblers of final products) tend to perform more routine-intensive tasks. For forward GVC participation, the interaction term with GDP per capita is negative and significant, in line with the overall results (Table 1). In countries with GDP per capita twice the average in our sample (comparable to the United States), the interaction term offsets the coefficient of forward GVC participation, so the overall association with RTI is 0.<sup>10</sup> Our findings align with the literature: manufacturing of

> 10 We obtain similar results for manufacturing (ISIC rev. 4 section C) rather than industry – results are available upon request.

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