Democracy and the Labor Share of Income: A Cross-Country Analysis

Guerriero, Marta

doi:10.2139/ssrn.3358003

Cited by 14 publications

(1 citation statement)

References 75 publications

(112 reference statements)

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“…Higher educational attainment influences labour through its effect on wages and employment. Also, pro-worker labour institutions can have an important and positive redistributive role in the economy, restoring the equilibrium between capital and labour, and counteracting possible negative effects generated by asymmetries in economic power between workers and employers (ADB 2005;EC 2007;Guerriero 2019). However, the stratification of labour can have strong implications on measured labour income and labour share, beyond institutions.…”

Section: Introductionmentioning

confidence: 99%

What Does Data on Functional Income Distribution tell us about Trends in and Correlates of Income Inequality in The Asia-Pacific?

2022

JEM

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This paper presents an analysis of the trend and patterns of the share of labour in GDP, the gap between wage and productivity, and inequality with a focus on Asia-Pacific countries for the period between 2004 and 2017. Descriptive analysis confirms a downward trend in labour income shares during the study period in most of the countries in the Asia-Pacific. Our analysis also shows that majority of the Asia-Pacific countries additionally witnessed a rise in the gap between labour productivity and wage, defined as the shortfall of wage from labour productivity as a percentage of wage. Furthermore, inequality, measured through the income Gini index also increased in these countries. Panel econometric regression results suggest that trade openness and FDI have a negative association with the labour share in GDP in the Asia-Pacific countries while being positively associated with the gap. Economic growth and structural transformation processes have also not been favourable in raising the labour share in GDP. Among other findings, technological development has not been labour-friendly in most of these countries. Non-agricultural employment share in total employment has a negative association with the labour share in GDP and is positively associated with the gap. Yet our analyses have confirmed that the reduction in labour share in income is associated with rising inequality in the Asia-Pacific countries. We conclude by discussing the role of two related major instruments of government policies --revenue generation, and public expenditure on social sectors --for addressing challenges related to widening inequality in the region.

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Section: Introductionmentioning

confidence: 99%

What Does Data on Functional Income Distribution tell us about Trends in and Correlates of Income Inequality in The Asia-Pacific?

2022

JEM

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Deindustrialization, Distribution, and Development

Sumner¹

2021

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This book builds upon previous work by the author on economic development, structural change, and income inequality. The core focus of the book is the emergent processes of stalled industrialization and the spectre of premature deindustrialization in developing countries. The term ‘rust belt’ has been rarely associated with developing countries to date. In fact, it is commonly associated with deindustrialization in advanced countries and the US in particular. However, such a belt is threatening the middle-income developing world, starting from Brazil and other countries in Latin America, running down across South Africa, and then upwards to Malaysia, Indonesia, Thailand, and the Philippines in South East Asia. This book discusses the causes and consequences of these emergent processes in developing countries.

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Sumner

2021

Deindustrialization, Distribution, and Development

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Democracy and the Labor Share of Income: A Cross-Country Analysis

Cited by 14 publications

References 75 publications

What Does Data on Functional Income Distribution tell us about Trends in and Correlates of Income Inequality in The Asia-Pacific?

What Does Data on Functional Income Distribution tell us about Trends in and Correlates of Income Inequality in The Asia-Pacific?

Deindustrialization, Distribution, and Development

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