Do Interactions between Finance and Labor Market Institutions Affect Wage Distribution?

Thibault Darcillon

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This article analyzes the linkages between financial liberalization, labor market institutions and wage inequality for 17 OECD countries over the 1989 to 2005 period. With the help of a fixed effect model with an interacted term, one crucial contribution of this article is to analyze the interacted impact of labor market institutions (i.e., workers' bargaining power and employment protection legislation) on the one hand and financial liberalization on the other hand on wage distribution. Our results indicate that changes in workers' bargaining power and in employment protection affect wage distribution (p9/p1 ratio). Estimates of the marginal effects show that by increasing labor markers regulation (i.e., reinforcing workers' bargaining power and increasing employment protection legislation) one also weakens the impact of financial liberalization on the increase in wage inequality

Keywords: Wage inequality; financial liberalization; corporate governance; employment protection; political economy (search for similar items in EconPapers)
JEL-codes: G34 J5 P16 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2012-12
New Economics Papers: this item is included in nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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http://mse.univ-paris1.fr/pub/mse/CES2012/12089.pdf (application/pdf)

Related works:
Working Paper: Do Interactions between Finance and Labor Market Institutions Affect Wage Distribution? (2012)
Working Paper: Do Interactions between Finance and Labor Market Institutions Affect Wage Distribution? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:12089

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