EconPapers    
Economics at your fingertips  
 

Labour and Financial Crises: Is Labour Paying the Price of the Crisis?

Remi Bazillier () and Boris Najman ()
Additional contact information
Boris Najman: Université Paris-Est, ERUDITE, TEPP

Comparative Economic Studies, 2017, vol. 59, issue 1, 55-76

Abstract: Abstract This paper investigates the relationship between the labour share and financial crises. While Diwan (2001) or Maarek et al. (2013) focused on the currency crisis, we propose to see if their analyses can be extended to the banking crisis and how it can influence the relative bargaining power of labour and capital within firms. To this end, we use international panel data of the share of labour in GDP. We confirm the existence of a negative trend for the labour share, which is largely explained by financial crises. However, the results differ for currency and banking crises. Currency crises affect the labour share negatively, while banking crises primarily affect capital income, at least during the year of the crisis. In the three years following a currency crisis, the labour share tends to be reduced by around 2% per year on average.

Keywords: labour share; banking crises; currency crises (search for similar items in EconPapers)
JEL-codes: E25 E44 G01 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41294-016-0015-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Labour and Financial Crises: Is Labour Paying the Price of the Crisis? (2017)
Working Paper: Labour and Financial crisis: is labour paying the price of the crisis ? (2010) Downloads
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:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0015-z

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-09-18
Handle: RePEc:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0015-z