EconPapers    
Economics at your fingertips  
 

How does Finance Affect Labor Market Institutions? An Empirical Analysis in 16 OECD Countries

Thibault Darcillon

Post-Print from HAL

Abstract: This article focuses on the impact of the process of financialization on two central labor market institutions, workers' bargaining power and employment protection legislation, in 16 OECD countries from 1970 to 2009. Financialization is described as a finance-led regime of accumulation and as the emergence of a shareholder value maximization strategy. Using various mechanisms at the micro and macro levels, empirical work has investigated the relationship between the type of financial relations and the agents' capacities of maintaining strong encompassing labor market institutions. I argue that the process of financialization will exert strong pressures on labor markets toward more eroded/decentralized bargaining institutions and more flexible employment relations. This article proposes an updated indicator of workers' bargaining power and various measures of financialization. Using panel data models, our main results point out that increased financialization is clearly associated with a reduction in workers' bargaining power and in the strictness of employment protection.

Keywords: Corporate governance; financialization; industrial relations; labor market institutions; political economy (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Published in Socio-Economic Review, 2015, 13 (3), pp.477-504. ⟨10.1093/ser/mwu038⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: How does Finance Affect Labor Market Institutions? An Empirical Analysis in 16 OECD Countries (2015)
Working Paper: How does Finance Affect Labor Market Institutions? An Empirical Analysis in 16 OECD Countries (2015)
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:hal:journl:hal-01248941

DOI: 10.1093/ser/mwu038

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:journl:hal-01248941