The impact of participation in global value chains on female employment: evidence from China

Purpose This paper examines the impact of GVC participation on the female employment share and its mechanisms from the perspective of forward and backward participation. Design/methodology/approach The core dataset is drawn from the China Labour Statistics Yearbook and the OECD's World Input-Output Tables (2021 edition). Based on these data, the paper employs fixed-effects models and an instrumental-variables approach. Findings The results reveal a clear distinction: forward GVC participation significantly increases female employment share, whereas backward GVC participation tends to reduce it. The impact operates through two key mechanisms: endogenous service input and total factor productivity. The effects are stronger in the tertiary sector than in the secondary and among women with medium- or high-skill levels than among those with low skills. Originality/value By distinguishing forward from backward GVC participation, this paper provides industry-level evidence on their differential associations with the female employment share and offers directional insights on engaging GVCs in ways more supportive of women's employment.