Labour Income and Employment embodied in Internationally Fragmented Production Chains

r4d Working Paper 2016/4 by Patrick Tomberger

ABSTRACT: The vertical fragmentation of the production chains of final goods causes new challenges for governments with respect to employment policies. But data on this fragmentation processes remains limited. This paper contributes to the literature with the construction of a database on labour value added and employment embodied in the production of final goods and exports, accounting for globally fragmented supply chains. It is based on Global Trade Analysis Project (GTAP) input-output data and covers 25 sectors and up to 64 countries for the years 1997, 2001, 2004, 2007 and 2011 and extends comparable databases with respect to the coverage of developing countries.