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Do Interactions between Finance and Labour Market Institutions Affect the Income Distribution?

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  • Thibault Darcillon

    () (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

Abstract

This article analyses the linkages between financial development, labour market institutions and market income inequality for 18 Organisation for Economic Co-operation and Development countries over the 1980 to 2012 period. With the help of a dynamic panel data model with an interacted term, one crucial contribution of this article is to analyse the interacted impact of labour market institutions (i.e. union density and employment protection legislation) on the one hand and financial development on the other hand on the income distribution. Our results indicate that changes in the financial/credit and labour market regulation affect the income distribution. Estimates of the marginal effects show that by increasing labour market regulation one also weakens the impact of the flexibilization in the financial/credit market on the increase in income inequality.

Suggested Citation

  • Thibault Darcillon, 2016. "Do Interactions between Finance and Labour Market Institutions Affect the Income Distribution?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01248984, HAL.
  • Handle: RePEc:hal:cesptp:hal-01248984
    DOI: 10.1111/labr.12070
    Note: View the original document on HAL open archive server: https://hal-paris1.archives-ouvertes.fr/hal-01248984
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    Citations

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    Cited by:

    1. Yun K. Kim & Gilberto Tadeu Lima & Mark Setterfield, 2017. "Political Aspects of Household Debt," Working Papers 1724, New School for Social Research, Department of Economics.
    2. Thibault Darcillon, 2016. "What Determines Top Income Shares? The Role of the Interactions between Financial Integration and Tax Policy," Documents de travail du Centre d'Economie de la Sorbonne 16032, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Thibault Darcillon, 2016. "What Determines Top Income Shares? The Role of the Interactions between Financial Integration and Tax Policy
      [Le rôle des interactions entre l'intégration financière et la politique fiscale dans la
      ," Post-Print halshs-01316927, HAL.

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