Capital Account Liberalization and Wage Inequality: Evidence from Firm Level Data - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Account Liberalization and Wage Inequality: Evidence from Firm Level Data write by Kodjovi M. Eklou. This book was released on 2023-03-03. Capital Account Liberalization and Wage Inequality: Evidence from Firm Level Data available in PDF, EPUB and Kindle. Firms play an important role in shaping income inequality at the aggregated country level, given that wages represent a significant proportion of household income. We investigate the distributional consequences of capital account liberalization, relying on firm level data to explore the implications for betweenfirms earning inequality in ASEAN5 countries over the period 1995-2019. We find that between-firms wage dispersion alone, accounts for a nontrivial proportion of the variation in the market Gini. Our empirical findings show that capital account liberalization increases between-firms wage inequality, as wages grow faster at initially high-paying firms and slow-down at firms at the lower portion of the wage distribution. These results are robust to a battery of robustness checks. Further, the directions and categories of capital account liberalization matter as results are pronounced for inflow liberalization and equity capital flows. We also show that capital account liberalization induces an increase in Profit-to-Wage ratios. Furthermore, the impact depends on country characteristics (wage setting institutions, the level of financial development and the size of the informal sector) as well as industry characteristics (export orientation and external finance dependence).
Capital Account Liberalization and Inequality
Capital Account Liberalization and Inequality - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Account Liberalization and Inequality write by Davide Furceri. This book was released on 2015-11-24. Capital Account Liberalization and Inequality available in PDF, EPUB and Kindle. This paper examines the distributional impact of capital account liberalization. Using panel data for 149 countries from 1970 to 2010, we find that, on average, capital account liberalization reforms increase inequality and reduce the labor share of income in the short and medium term. We also find that the level of financial development and the occurrence of crises play a key role in shaping the response of inequality to capital account liberalization reforms.
Who Benefits from Capital Account Liberalization? Evidence from Firm-Level Credit Ratings Data
Who Benefits from Capital Account Liberalization? Evidence from Firm-Level Credit Ratings Data - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Who Benefits from Capital Account Liberalization? Evidence from Firm-Level Credit Ratings Data write by Mr.Martin Schindler. This book was released on 2009-09-01. Who Benefits from Capital Account Liberalization? Evidence from Firm-Level Credit Ratings Data available in PDF, EPUB and Kindle. We provide new firm-level evidence on the effects of capital account liberalization. Based on corporate foreign-currency credit ratings data and a novel capital account restrictions index, we find that capital controls can substantially limit access to, and raise the cost of, foreign currency debt, especially for firms without foreign currency revenues. As an identification strategy, we exploit, via a difference-in-difference approach, within-country variation in firms' access to foreign currency, measured by whether or not a firm belongs to the nontradables sector. Nontradables firms benefit substantially more from capital account liberalization than others, a finding that is robust to a broad range of alternative specifications.
Capital Account Liberalization (CAL) and Income Inequality
Capital Account Liberalization (CAL) and Income Inequality - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Account Liberalization (CAL) and Income Inequality write by Md. Al-Amin Parvez. This book was released on 2018. Capital Account Liberalization (CAL) and Income Inequality available in PDF, EPUB and Kindle. The opening of capital account of an economy allows the financially constrained local firms to attract and raise cost efficient capital from abroad in one hand and on the other hand allows the well performing and financially solvent local firms to go out other countries and avail the external economics of scale, low-cost factors of production and explore new markets. Since capital and skilled labor are relative complements, the opening of capital account could result in a higher income inequality between the skilled and unskilled labor classes. To present some pieces of evidence in this regard, a panel data set with secondary data of 11 Asia-Pacific countries have been analyzed by applying the general panel data analysis techniques and GMM model for both de jure and de facto measures. It has been found that the capital account liberalization (CAL) would increase the incomes more of skilled labor working in the industries than the unskilled labor.
Inequality, Leverage and Crises
Inequality, Leverage and Crises - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inequality, Leverage and Crises write by Mr.Michael Kumhof. This book was released on 2010-11-01. Inequality, Leverage and Crises available in PDF, EPUB and Kindle. The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group's bargaining power is more effective.
