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

Thibault Darcillon

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

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; Inégalités salariales; libéralisation financière; gouvernance d'entreprise; protection de l'emploi; économie politique (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-lab and nep-lma
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00768908v1
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Citations: View citations in EconPapers (5)

Published in 2012

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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:hal:cesptp:halshs-00768908

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