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Is There a Social Kuznets Curve? The Influence of Labour Standards on Inequality

Author

Listed:
  • Rémi Bazillier

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Sirven

    (Capability and Sustainibility Centre ? VHI - CAM - University of Cambridge [UK])

Abstract

This study empirically investigates the impact of core labour standards on incomeinequality for a range of 90 countries from 1990–2000. A synthetic index of labour standards iscomputed by means of aMultiple Correspondence Analysis and no significant correlation is foundwith the Gini index. One of the reasons pointed out is that the effective implementation of corelabour standards depends on the quality of the country's political and legal systems. Usinginstrumental variables in a TSLS model, we found an inverse ‘U' shaped curve between the newendogenous index of core labour standards and income inequality.

Suggested Citation

  • Rémi Bazillier & Nicolas Sirven, 2008. "Is There a Social Kuznets Curve? The Influence of Labour Standards on Inequality," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00310400, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00310400
    DOI: 10.1080/00220380802150714
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    References listed on IDEAS

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    1. Camargo, José Márcio & Scheinkman, José A. & Werneck, Rogério L.F. & De Barros, Ricardo Paes & Ranis, Gustav & Velasco, Andrés & Bourguignon, François & Thorp, Rosemary & Figueroa, Adolfo & Lustig, No, 1994. "En Route to Modern Growth: Latin America in the 1990s: Essays in Honor of Carlos Díaz-Alejandro," IDB Publications (Books), Inter-American Development Bank, number 451.
    2. Daniele Checchi & Cecilia García‐Peñalosa, 2010. "Labour Market Institutions and the Personal Distribution of Income in the OECD," Economica, London School of Economics and Political Science, vol. 77(307), pages 413-450, July.
    3. César Calderón & Alberto Chong & Rodrigo O. Valdés, 2005. "Labor Market Regulations and Income Inequality: Evidence for a Panel of Countries," Central Banking, Analysis, and Economic Policies Book Series, in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.),Labor Markets and Institutions, edition 1, volume 8, chapter 7, pages 221-279, Central Bank of Chile.
    4. José Márcio Camargo & José A. Scheinkman & Rogério L.F. Werneck & Ricardo Paes de Barros & Gustav Ranis & Andrés Velasco & François Bourguignon & Rosemary Thorp & Adolfo Figueroa & Nora Lustig & Mario, 1994. "En Route to Modern Growth: Latin America in the 1990s: Essays in Honor of Carlos Díaz-Alejandro," IDB Publications (Books), Inter-American Development Bank, number 80098 edited by Gustav Ranis, February.
    5. Milanovic, Branko, 1995. "Poverty, inequality, and social policy in transition economies," Policy Research Working Paper Series 1530, The World Bank.
    6. Chau, Nancy H. & Kanbur, Ravi, 2001. "The Adoption of International Labor Standards Conventions: Who, What, and Why?," Working Papers 127654, Cornell University, Department of Applied Economics and Management.
    7. Bazillier, Remi, 2008. "Core Labor Standards and Development: Impact on Long-Term Income," World Development, Elsevier, vol. 36(1), pages 17-38, January.
    8. Drusilla K. Brown, 2000. "International Trade and Core Labor Standards: A Survey of the Recent Literature," Discussion Papers Series, Department of Economics, Tufts University 0005, Department of Economics, Tufts University.
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    10. Kanbur, Ravi & Chau, Nancy H, 2001. "The Adoption of Labour Standards Conventions: Who, When and Why?," CEPR Discussion Papers 2904, C.E.P.R. Discussion Papers.
    11. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
    12. César Calderón & Alberto Chong & Rodrigo O. Valdés, 2005. "Labor Market Regulations and Income Inequality: Evidence for a Panel of Countries," Central Banking, Analysis, and Economic Policies Book Series,in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 7, pages 221-279 Central Bank of Chile.
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