Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in Oecd Countries? Some Empirical Evidence - 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 Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in Oecd Countries? Some Empirical Evidence write by Mr.Patrick Van Houdt. This book was released on 1997-01-01. Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in Oecd Countries? Some Empirical Evidence available in PDF, EPUB and Kindle. Income distribution may be related to fundamentals affecting economic growth and to labor market policies. Noting that inequality is affected by unemployment. This paper presents a model in which labor market policies affect unemployment which in turn affects inequality. The model also includes the effects of changes in per capita income on inequality through the accumulation of physical capital and technological know–how. When a resulting reduced–form relationship is estimated, its explanatory power is surprisingly high: on average, it explains about three quarters of the variation in inequality measures for the OECD countries, and Granger Causality tests confirm the model’s predictions.
Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in OECD Countries? Some Empirical Evidence
Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in OECD Countries? Some Empirical Evidence - 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 Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in OECD Countries? Some Empirical Evidence write by Patrick Vanhoudt. This book was released on 2014. Do Labor Market Policies and Growth Fundamentals Matter for Income Inequality in OECD Countries? Some Empirical Evidence available in PDF, EPUB and Kindle. Income distribution may be related to fundamentals affecting economic growth and to labor market policies. Noting that inequality is affected by unemployment. This paper presents a model in which labor market policies affect unemployment which in turn affects inequality. The model also includes the effects of changes in per capita income on inequality through the accumulation of physical capital and technological know-how. When a resulting reduced-form relationship is estimated, its explanatory power is surprisingly high: on average, it explains about three quarters of the variation in inequality measures for the OECD countries, and Granger Causality tests confirm the model`s predictions.
Inequality, Labor Market Policies and Economic Growth
Inequality, Labor Market Policies and Economic Growth - 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, Labor Market Policies and Economic Growth write by Patrick Vanhoudt. This book was released on 1999. Inequality, Labor Market Policies and Economic Growth available in PDF, EPUB and Kindle. This paper tries to analyze whether pursuing economic growth and setting up labor market policies affect inequality. Therefore a simple testable model along the lines of the Kuznets and Neoclassical literature is fit to the data. The explanatory power of the regressions is high. On average the model explains about three quarters of the variation in inequality measures for the OECD countries. The theoretical ignorance about the sources of inequality translates into sharp disagreements in evaluating policy options. The results here indicate that inequality is negatively affected by factors related to the engines of economic growth: the accumulation of physical capital and technological know-how. As for aggregate investment in physical capital and inequality in the OECD countries, the results in this paper reconcile with earlier findings on this topic. However the relation between R&D and inequality had not been tested yet.The gains for the upper part of the distribution from investments in capital outweigh the losses at the bottom quintile significantly. Moreover, the impact of accumulating either kind of capital differs: investment in physical capital has a larger negative impact on the bottom part than investment in knowledge, and the income gains of accumulating technological know-how are smaller for the richest quintile compared to the gains of investment in physical capital. Investment in R&D thus seems the least harmful for inequality: accumulating technological know-how widens the gap between rich and poor less serious than accumulating physical capital. Changes in the tax-wedge turn out to be a significant instrument for lowering inequality: it increases the income share at the bottom part of the distribution at the cost of a lower income share higher up the distribution. The effect of changes in the labor force growth could not be estimated precisely, but higher labor force growth seems to widen the gap between the top and bottom quintile, via a decrease in the income at the lower and an increase at the top part of the distribution. The impact of active labor market policies is significant and effective to reduce inequality. The reduction in the income share at the top part of the distribution due to this type of policy (presumably financed by redistributive taxes) can be ignored compared to the gains at the bottom part of the distribution. As opposed to the active labor market policies, passive labor market policies, however, have only a small impact which could not be estimated precisely. As for the Gini-coefficient this kind of labor market policy moreover is rather a source of increases in inequality. However, the sum of the labor market policy and the tax wedge effects seems not offset the effects of investment in physical capital and knowledge. The causality tests confirm the causal relation in this model as well as the causal direction implied in the political economy literature, but rejects the causality suggested in the consumption theory.
The Economics of Rising Inequalities
The Economics of Rising Inequalities - 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 The Economics of Rising Inequalities write by Daniel Cohen. This book was released on 2002-10-24. The Economics of Rising Inequalities available in PDF, EPUB and Kindle. This book is an in-depth discussion of rising inequalities in the western world. It explores the extent to which rising inequalities are the mechanical consequence of changes in economic fundamentals (such as changes in technological or demographic parameters), and to what extent they are the contingent consequences of country-specific and time-specific changes in institutions. Both the 'fundamentalist' view and the 'institutionalist' view have some relevance. For instance, the decline of traditional manufacturing employment since the 1970s has been associated in every developed country with a rise of labor-market inequality (the inequality of labor earnings within the working-age population has gone up in all countries), which lends support to the fundamentalist view. But, on the other hand, everybody agrees that institutional differences (minimum wage, collective bargaining, tax and transfer policy, etc.) between Continental European countries and Anglo-Saxon countries explain why disposable income inequality trajectories have been so different in those two groups of countries during the 1980s-90s, which lends support to the institutionalist view. The chapters in this volume show the strength of both views. Through empirical evidence and new theoretical insights the contributors argue that institutions always play a crucial role in shaping inequalities, and sometimes preventing them, but that inequalities across age, sex, and skills often recur. From Sweden to Spain and Portugal, from Italy to Japan and the USA, the volume explores the diversity of the interplay between market forces and institutions.
In It Together: Why Less Inequality Benefits All
In It Together: Why Less Inequality Benefits All - 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 In It Together: Why Less Inequality Benefits All write by OECD. This book was released on 2015-05-21. In It Together: Why Less Inequality Benefits All available in PDF, EPUB and Kindle. This book highlights the key areas where inequalities are created and where new policies are required, including the consequences of current consolidation policies, structural labour market changes with rising non-standard work and job polarisation, persisting gender gaps...
