Low-skilled labour is, according to the data at hand, traded within value chains more intensely than high-skilled labour, hence the recent overall positive effect of GVC participation on wage inequality. This latter result is consistent with the more general finding from the literature on inequality which finds that diffusion of knowledge and investment in training and skills are the main forces that can reduce income inequality (e.g. Piketty, 2014). University of Chicago Press, Chicago. World Economics, World Economics, Economic & Financial Publishing, London, Vol.