IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v68y2021i2p167-185id1452.html
   My bibliography  Save this article

Labour Market Flexibilization and Income Distribution in Europe

Author

Listed:
  • Philips Arestis
  • Jesús Ferreiro
  • Carmen Gómez

Abstract

This paper analyses the role played by the flexibilization of labour markets on functional income distribution. Specifically, we analyse whether employment protection legislation affects the evolution of labour income share, measured by the size of compensation of employees as a percentage of GDP, the sum of wages and salaries as a percentage of GDP and the size of the adjusted wage share, in twenty European economies. Our study’s results show that the evolution of labour income share is explained by the economic growth, the growth of employment and unemployment rates, and the growth of real wages. Regarding the role played by the flexibility of the labour market, and specifically of the employment protection legislation, only employment protection for temporary workers has a significant impact on the evolution of labour shares. Our results show that stricter provisions on the use of fixed-term and temporary agency contracts have a positive impact on the growth of labour shares. Key words: Employment protection legislation, Labour markets, Labour income share, Income distribution. JEL: C33, E24, E25, F66.

Suggested Citation

  • Philips Arestis & Jesús Ferreiro & Carmen Gómez, 2021. "Labour Market Flexibilization and Income Distribution in Europe," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 68(2), pages 167-185.
    • Handle: RePEc:voj:journl:v:68:y:2021:i:2:p:167-185:id:1452
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/1452/646
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Employment protection legislation; Labour markets; Labour income share; Income distribution;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:68:y:2021:i:2:p:167-185:id:1452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.