Capital Markets Integration and Labor Market Institutions
Giovanni Pica
The B.E. Journal of Macroeconomics, 2010, vol. 10, issue 1, 57
Abstract:
A major development in recent decades in industrialized countries is the decline in national savings rates. Over the same period, in many countries the labor's share of national income has declined and liberalizing labor market reforms have been implemented. This paper seeks to provide a unified account of these developments. We show that globalization, in the form of increased capital mobility, provides incentives to implement labor market reforms that raise the returns to capital and improve efficiency. Nevertheless, in a world where aggregate savings reflect life-cycle motives and are mainly performed out of labor income, the associated fall in the labor share reduces aggregate savings and the pace of capital accumulation.
Keywords: unemployment; factor mobility; political economy; dynamic-repeated voting; globalization; saving rate; factor shares (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://doi.org/10.2202/1935-1690.1757 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.
Related works:
Working Paper: Capital Markets Integration and Labor Market Institutions (2007) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejmac:v:10:y:2010:i:1:n:6
Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html
DOI: 10.2202/1935-1690.1757
Access Statistics for this article
The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti
More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().