Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income

Koske, Isabell; Fournier, Jean‐Marc; Wanner, Isabelle

doi:10.1787/5k9h2975rhhf-en

Cited by 26 publications

(24 citation statements)

References 118 publications

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“…The incomeequalising effects of export intensity are broadly consistent with previous empirical literature (e.g. Jaumotte et al, 2008 andKoske et al, 2012). 57 Higher import penetration is found to depress long-run GDP per capita -but with estimates being only weakly significant -while no statistically significant effects could be uncovered on household disposable incomes.…”

supporting

confidence: 89%

“…As a result, associated reforms often raise a trade-off between equity and efficiency, as discussed in e.g. Joumard et al (2012), Koske et al (2012) andOECD (2012). Microsimulation models usually assess the impact of redistribution-oriented policy reforms on household disposable incomes across the income distribution -and thus provide an additional complementary benchmark from the perspective of this paper.…”

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confidence: 99%

“…The literature is less conclusive regarding employment: while some studies such as Koske et al (2012) cannot detect a link between minimum wages and overall employment, others find negative employment effects, at least for some workers such as the very low-skilled (see Neumark and Wascher, 2007 for a review). The few studies that looked at the combined effect (as measured by the Gini index for labour income inequality, see e.g.…”

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confidence: 99%

“…However, the impact on income inequality is uncertain and empirical evidence generally inconclusive (OECD, 2013a;Guadalupe, 2007;Koske et al, 2012). This is because employment gains 49 may be at least partly offset by higher wage dispersion, as more intense product market competition tends to reduce the bargaining power of workers.…”

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confidence: 99%

“…Braconier and Ruiz-Valenzuela (2014), Johansson and Olaberria (2014), OECD (2011b), Koske et al (2012).…”

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confidence: 99%

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Can Pro-growth Policies Lift all Boats?

Causa

Serres

Ruiz

2015

OECD Economics Department Working Papers

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JT03368329Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2014)76 Unclassified English -Or. English ECO/WKP(2014)76 2 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.Comments on Working Papers are welcomed, and may be sent to the Economics Department, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France, or by e-mail to eco.contact@oecd.org.This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. © OECD (2014)You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for commercial use and translation rights should be submitted to rights@oecd.org ECO/WKP(2014)76 3 ABSTRACT / RÉSUMÉ Can pro-growth policies lift all boats? An analysis based on household disposable incomeIn a majority of OECD countries, GDP growth over the past three decades has been associated with growing income disparities. To shed some lights on the potential sources of trade-offs between growth and equity, this paper investigates the long-run impact of structural reforms on GDP per capita and household income distribution. Pro-growth reforms can be distinguished according to whether they are found to generate an increase or a reduction in household disposable income inequality. Those that contribute to reduce inequality include the reduction in regulatory barriers to competition, trade and FDI, as well as the stepping-up in job search assistance and training programmes. Conversely, a tightening of unemployment benefits for the long-term unemployed is found to lift mean household income but to lower income among poorer households, thus raising inequality. Several other reforms have no significant impact on income distribution. JEL codes: O47; D37; E61Keywords: Growth, inequality, pro-growth policies ****************************** Les politiques de croissance peuvent-e...

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confidence: 89%

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confidence: 99%

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confidence: 99%

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confidence: 99%

“…Braconier and Ruiz-Valenzuela (2014), Johansson and Olaberria (2014), OECD (2011b), Koske et al (2012).…”

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confidence: 99%