The Employment Effects of Technological Innovation, Consumption, and Participation in Global Value Chains: Evidence from Developing Asia
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This paper examines how employment responded to consumption, trade, and technological advances in developing Asia during the period 2005–2015.
Global value chains have helped create jobs in developing countries in Asia, but there is concern that technology could displace workers. The study uses a demand-based input–output approach to explore this concern. Its findings indicate that technological change in global value chains was associated with a decrease in labor demand across all sectors, and an increase in the share of nonroutine cognitive occupations. Further, higher domestic consumption increased labor demand enough to offset the negative impact of technological change.