Inequality, financialization, and economic decline

Tridico, Pasquale; Pariboni, Riccardo

doi:10.1080/01603477.2017.1338966

Cited by 50 publications

(85 citation statements)

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“…Fuelled by these arguments, and the recommendations made by international organizations, such as the European Commission, the International Monetary Fund, the Organization for Economic Cooperation and Development (OECD), many economies have approved labour market reforms. These reforms have acted on what is presumed to be the main sources of rigidities in the labour market: the unemployment protection schemes, the collective bargaining and the employment protection legislation (Brancaccio et al, 2018;Ferreiro and Gomez, 2017;Kugler, 2019;McBride and Watson, 2019;Tridico and Pariboni, 2017). It was taken for granted that in the longterm these reforms would lead to more employment and to lower and more stable unemployment rates.…”

Section: Labour Market Institutions Employment Protection and Labourmentioning

confidence: 99%

Quality of employment and employment protection. Effects of employment protection on temporary and permanent employment

Arestis

Ferreiro

Gómez

2020

Structural Change and Economic Dynamics

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Section: Labour Market Institutions Employment Protection and Labourmentioning

confidence: 99%

Quality of employment and employment protection. Effects of employment protection on temporary and permanent employment

Arestis

Ferreiro

Gómez

2020

Structural Change and Economic Dynamics

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“…A similar argument is made inStorm and Naastepad (2015).22 AsBoeri and Garibaldi (2007) notice, in most European countries, the increase in labor flexibility has been taking place mainly through the liberalization of the terms for the use of temporary contracts.23 See alsoTridico and Pariboni (2018) for a recent discussion.…”

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confidence: 81%

Structural change, institutions and the dynamics of labor productivity in Europe

Pariboni

Tridico

2019

J Evol Econ

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The objective of this paper is to explain the reasons behind the dynamics of labor productivity (LP) growth during a process of institutional and structural change. We show-by means of a theoretical discussion and an empirical analysis, conducted on a sample of 25 European countries for the period 1995-2016-that four main channels contribute to explaining the evolution of LP. First, the speed of investment, which incorporates innovation and favors an increase of LP growth; second, the speed of Research and Development (R&D), which allows for the creation of new ideas and shows the "dynamism of a society", having positive effects on LP; third, the deregulation of labor markets and the increase of temporary employment, both of which encourage labor-intensive strategies by firms, with low value-added and low productivity gains; fourth, the direction of structural change, which can take place toward services industries affected by "Baumol's disease".

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“…This has increased the vulnerability of unskilled labour and/or low-skilled labour and has given rise to asymmetries in income distribution, leading the poorest households to incur debt to copy the consumption standards of the richest households. This is the 'demonstration effect' or 'Duesenberry effect' (Duesenberry, 1949 The fourth macroeconomic determinant of households' indebtedness is the decline in households' labour income, which is essentially explained by technological progress, globalisation, neoliberalism and financialisation since the mid-1980s (Barradas and Lagoa, 2017;Tridico and Pariboni, 2018;Barradas, 2019). The fall in households' labour income led them to incur more debt in order to prevent a loss in their standard of living.…”

Section: Figure 1 -Macroeconomic Determinants Of Households' Indebtedmentioning

confidence: 99%

Macroeconomic Determinants of Households' Indebtedness in Portugal: What Really Matters in the Era of Financialisation?

Romão¹,

Barradas²

2020

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The objective of this paper is to perform a time series econometric analysis in order to empirically assess the macroeconomic determinants and the corresponding drivers of the Portuguese households' indebtedness in the period 1988 to 2016. During that period, the Portuguese economy experienced a process of financialisation that contributed to an increase in Portuguese households' indebtedness to unprecedented levels. The Portuguese households' indebtedness played a crucial role in the recent sovereign debt crisis. Based on the existing literature, we hypothesize that Portuguese households' indebtedness was due to seven macroeconomic determinants, notably housing prices, financial asset prices, the degree of personal income inequality, households' labour income, the importance of welfare state expenditures, the fraction of the working-age population and the level of interest rates. Our findings reveal that financial asset prices, the degree of personal income inequality, households' labour income and the fraction of the working-age population positively impact Portuguese households' indebtedness, whereas the housing prices negatively impact Portuguese households' indebtedness. Our findings also show that the increase in financial asset prices and the decline in housing prices were the main drivers of Portuguese households' indebtedness in the last few decades.

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Inequality, financialization, and economic decline

Cited by 50 publications

References 50 publications

Quality of employment and employment protection. Effects of employment protection on temporary and permanent employment

Quality of employment and employment protection. Effects of employment protection on temporary and permanent employment

Structural change, institutions and the dynamics of labor productivity in Europe

Macroeconomic Determinants of Households' Indebtedness in Portugal: What Really Matters in the Era of Financialisation?

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