Summary
The division of labor - breaking down work into tasks so that workers can specialize in a subset of tasks - is believed by many economists to be key to economic progress, by providing efficiency gains when producing goods and services. A key feature of the modern economy is that the division of labor is increasingly taking place between firms - in a production network - as firms fragment production along the supply chain, both within and across borders (Johnson and Noguera, 2017).
This project aims to provide new frameworks and novel evidence on how deepening production networks shapes the division of labor within and across countries, with particular emphasis on labor market implications of production networks. Specifically, DIVISION will investigate how production networks jointly shape efficiency and equity: What are the economic effects of deepening production networks on efficiency, specialization and growth? And what are the effect on wages, the skill premium (skilled relative to unskilled wages) and earnings inequality? This comprehensive and ambitious analysis includes developing new methods and economic frameworks as well as providing new datasets and novel empirical evidence.
Economic growth has slowed down since the 2007-08 global financial crisis, European firms are getting older and less dynamic and economic inequality is increasing in many parts of the world. A rigorous analysis of the role of production networks for efficiency and equity is therefore urgently needed to address today’s main societal challenges.
This project aims to provide new frameworks and novel evidence on how deepening production networks shapes the division of labor within and across countries, with particular emphasis on labor market implications of production networks. Specifically, DIVISION will investigate how production networks jointly shape efficiency and equity: What are the economic effects of deepening production networks on efficiency, specialization and growth? And what are the effect on wages, the skill premium (skilled relative to unskilled wages) and earnings inequality? This comprehensive and ambitious analysis includes developing new methods and economic frameworks as well as providing new datasets and novel empirical evidence.
Economic growth has slowed down since the 2007-08 global financial crisis, European firms are getting older and less dynamic and economic inequality is increasing in many parts of the world. A rigorous analysis of the role of production networks for efficiency and equity is therefore urgently needed to address today’s main societal challenges.
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More information & hyperlinks
| Web resources: | https://cordis.europa.eu/project/id/101141494 |
| Start date: | 01-09-2024 |
| End date: | 31-08-2029 |
| Total budget - Public funding: | 2 277 400,00 Euro - 2 277 400,00 Euro |
Cordis data
Original description
The division of labor - breaking down work into tasks so that workers can specialize in a subset of tasks - is believed by many economists to be key to economic progress, by providing efficiency gains when producing goods and services. A key feature of the modern economy is that the division of labor is increasingly taking place between firms - in a production network - as firms fragment production along the supply chain, both within and across borders (Johnson and Noguera, 2017).This project aims to provide new frameworks and novel evidence on how deepening production networks shapes the division of labor within and across countries, with particular emphasis on labor market implications of production networks. Specifically, DIVISION will investigate how production networks jointly shape efficiency and equity: What are the economic effects of deepening production networks on efficiency, specialization and growth? And what are the effect on wages, the skill premium (skilled relative to unskilled wages) and earnings inequality? This comprehensive and ambitious analysis includes developing new methods and economic frameworks as well as providing new datasets and novel empirical evidence.
Economic growth has slowed down since the 2007-08 global financial crisis, European firms are getting older and less dynamic and economic inequality is increasing in many parts of the world. A rigorous analysis of the role of production networks for efficiency and equity is therefore urgently needed to address today’s main societal challenges.
Status
SIGNEDCall topic
ERC-2023-ADGUpdate Date
26-11-2024
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