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Trends In The Rentier Income Share In OECD Countries, 1960-2000

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  • Matthew Abrena
  • Gerald Epstein
  • Dorothy Power

Abstract

This paper presents the first set of estimates of the rentier share of income for twenty-nine OECD countries. We define rentier share to mean the income accruing to financial institutions and the holders of financial assets. The years of coverage vary by country, but span the period 1960-2000. The paper presents the estimates, describes in detail the methods used to construct the series, and presents comprehensive information on our data sources. In addition, we compare the trends in rentier shares with the share of income going to non-financial corporations. Overall we find that the rentier share of income rose in most countries between the 1960's and 1970's on the one hand, and the 1980's and 1990's, on the other. At the same time, movements in rentier income over this period vary from country to country, and are quite variable over time. We also present estimates for rentier shares including capital gains for a subset of countries in the 1980's and 1990's. Including capital gains substantially alters the trend of rentier shares in the 1990's, in most cases, causing them to increase.

Suggested Citation

  • Matthew Abrena & Gerald Epstein & Dorothy Power, 2003. "Trends In The Rentier Income Share In OECD Countries, 1960-2000," Working Papers wp58a, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:periwp:wp58a
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    References listed on IDEAS

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    4. Ann Harrison, 2022. "Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 5, pages 89-135, World Scientific Publishing Co. Pte. Ltd..
    5. Erinc Yeldan, 2000. "The Impact of Financial Liberalization and the Rise of Financial Rents on Income Inequality: The Case of Turkey," WIDER Working Paper Series wp-2000-206, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Engelbert Stockhammer, 2012. "Financialization," Chapters, in: Jan Toporowski & Jo Michell (ed.), Handbook of Critical Issues in Finance, chapter 17, pages i-ii, Edward Elgar Publishing.
    2. Eckhard Hein, 2010. "Shareholder Value Orientation, Distribution And Growth—Short‐ And Medium‐Run Effects In A Kaleckian Model," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 302-332, May.
    3. Eckhard Hein, 2009. "A (Post-) Keynesian perspective on "financialisation"," IMK Studies 01-2009, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Gemzik-Salwach Agata & Perz Paweł, 2018. "Financialization in the Regional Aspect. An Attempt to Measure a Phenomenon," Central European Economic Journal, Sciendo, vol. 5(52), pages 56-66, January.
    5. Roy Trivedi, Smita, 2011. "The growing dichotomy between real and financial sectors," MPRA Paper 41421, University Library of Munich, Germany.
    6. Thomas I. Palley, 2013. "Financialization: What It Is and Why It Matters," Palgrave Macmillan Books, in: Financialization, chapter 2, pages 17-40, Palgrave Macmillan.
    7. Guglielmo Forges Davanzati & Andrea Pacella, 2010. "Emulation, indebtedness and income distribution: A monetary theory of production approach," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(1), pages 147-165.
    8. Engelbert Stockhammer, 2010. "Financialization and the Global Economy," Working Papers wp240, Political Economy Research Institute, University of Massachusetts at Amherst.
    9. Stockhammer, Engelbert,, 2013. "Why have wage shares fallen? A panel analysis of the determinants of functional income distribution: for the International Labour Organisation (ILO) project "New Perspectives on Wages and Economi," ILO Working Papers 994709133402676, International Labour Organization.
    10. repec:ilo:ilowps:470913 is not listed on IDEAS
    11. Engelbert Stockhammer, 2007. "Some Stylized Facts on the Finance-Dominated Accumulation Regime," Working Papers wp142, Political Economy Research Institute, University of Massachusetts at Amherst.

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