Back to search

Global Value Chains and Union Decline in Rich Democracies

DSEID
DSEID-001-7168497
DOI
10.1177/00031224251315496
Journal
American Sociological Review
Publisher
SAGE Publications
Published
2025-4
Status
failed

Abstract

This article reassesses the classic thesis linking the globalization of production to union decline. Our argument is three-fold. First, prior literature does not appreciate how the exchange conditions characterizing global value chain (GVC) relations between leading firms in rich democracies and supplier firms in less developed countries (LDCs) can undermine unionization through trade. Second, the worldwide entrenchment of GVCs as an organizational form over time, and cross-national variation in the strength and scope of two key labor market institutions (wage-coordination and Ghent systems), should moderate the effect of LDC trade on unionization. Third, trade with LDCs is endogenous in models of union decline, because high unionization often leads to offshoring. Empirically, we use an instrumental variable (IV) design and a panel dataset covering the longest historical period studied to date. IV estimates suggest that trade with LDCs reduces unionization in rich democracies; these estimates are nearly three times as large as results obtained by OLS, and they increase in size as GVCs entrench worldwide. Estimates also weaken in countries with highly coordinated wage-setting institutions and Ghent systems. Nevertheless, conditional effects and counterfactual histories suggest that GVCs cause union decline even in countries with the most union-friendly institutions, and were more important for union decline overall than either wage-coordination or Ghent systems.

Ingestion failed: Traceback (most recent call last): File "/srv/app/app/worker.py", line 85, in run_once process_job(db, job) File "/srv/app/app/worker.py", line 39, in process_job pdf_path, info = fetch_pdf_temp(candidate["url"]) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ File "/srv/app/app/downloader.py", line 129, in fetch_pdf_temp raise ValueError(f"PDF source returned HTTP {response.status_code}.") ValueError: PDF source returned HTTP 403.

PDF

No local PDF is available.

GROBID Extracted text; discontinued.

This text is generated from TEI extraction for accessibility, search, and TTS. Formulas, tables, figures, page layout, and references may not perfectly match the original PDF.

No accessible text representation is available. The text extraction service has been discontinued for the time being. If you require this service, for accessibility or any other reason, please submit an issue/request on this page.

Metadata

Title
Global Value Chains and Union Decline in Rich Democracies
Delta ID
DSEID-001-7168497
Authors
Matthew C. Mahutga, Manjing Gao, Roshan K. Pandian
Abstract source
crossref
Source URL
https://escholarship.org/content/qt2m56q5j5/qt2m56q5j5.pdf
Access
open_repository
Licence
cc-by-nc-nd
PDF SHA-256
TEI SHA-256
GROBID

Issues

No public issues have been filed for this DOI.

Submit an issue

Record history

WhenEventFieldOldNew
2026-06-18 19:37:53.011249+00:00identifier_assignedDSEIDDSEID-001-7168497