Labour Market Institutions and the Personal Distribution of Income in the OECD
AbstractA large literature has studied the impact of labour market institutions on wage inequality, but their effect on income inequality has received little attention. This paper argues that personal income inequality depends on the wage differential, the labour share and the unemployment rate. Labour market institutions affect income inequality through these three channels, and their overall effect is theoretically ambiguous. We use a panel of OECD countries for the period 1960-2000 to examine these effects. We find that greater unionization and greater wage bargaining coordination have opposite effects on inequality, implying conflicting effects of greater union presence on income inequality. Copyright (c) The London School of Economics and Political Science 2009.
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Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 77 (2010)
Issue (Month): 307 (07)
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- Daniele Checchi & Cecilia Garcia-Peñalosa, 2005. "Labour Market Institutions and the Personal Distribution of Income in the OECD," CESifo Working Paper Series 1608, CESifo Group Munich.
- Daniele Checchi & Cecilia García Peñalosa, 2005. "Labour Market Institutions and the Personal Distribution of Income in the OECD," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1009, Universitá degli Studi di Milano.
- Checchi, Daniele & García-Peñalosa, Cecilia, 2005. "Labour Market Institutions and the Personal Distribution of Income in the OECD," IZA Discussion Papers 1681, Institute for the Study of Labor (IZA).
- Daniele Checchi & Cecilia Garcìa-Peñalosa, 2008. "Labour market institutions and the personal distribution of income in the OECD," Working Papers halshs-00341005, HAL.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
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