TRADE UNIONS, UNEMPLOYMENT, ECONOMIC GROWTH, AND INCOME INEQUALITY

2014 ◽  
Vol 20 (1) ◽  
pp. 404-428 ◽  
Author(s):  
Juin-jen Chang ◽  
Hsiao-wen Hung
Keyword(s):  
Income Inequality ◽  
Trade Unions ◽  
Numerical Study ◽  
High Growth ◽  
Working Hours ◽  
Labor Income ◽  
Intensive Margin ◽  
Ambiguous Effect ◽  
The Impact ◽  
Positive Effect

In this paper, unemployment, growth, and income inequality are interdependent and endogenously determined in a unified model of a trade union. Analytically, we show that the effective labor force exhibits an intensive margin response, in the sense that in response to higher unionization the number of employed workers decreases, but each individual employed worker provides more working hours. This intensive margin response leads to the possibility of the coexistence of high unemployment and high growth. Moreover, unionization gives rise to an ambiguous effect on income inequality, whereas it has an unambiguously positive effect on the labor income share and growth rate. Our numerical study shows that the elasticity of substitution between labor and capital plays an important role in governing the steady-state consequences and affecting the impact of (de-) unionization. These results provide not only a plausible explanation of the empirical evidence, but also a reconciliation for the disparity in the empirical findings.

40 Jahre Stabilitäts- und Wachstumsgesetz. Theoretische Analyse und statistische Evaluation einer verfassungsökonomischen Innovation

2008 ◽  
Vol 49 (1) ◽  
Author(s):  
Heinz Grossekettler
Keyword(s):  
Economic Growth ◽  
Trade Unions ◽  
Full Employment ◽  
Working Hours ◽  
Control Group ◽  
Wage Policy ◽  
Inappropriate Use ◽  
Success Stories ◽  
The Law ◽  
The Impact

AbstractThis paper considers the impact over time of the German “Economic Growth and Stability Law”, which had its 40th anniversary on the 6th June, 2007. After looking at the history and development of the law and the associated expectations, the intended functions are analysed critically. Inappropriate use of the law is analysed from the perspective of public choice, as well as the insufficient consideration of reaction delays and, above all, the underestimation of the role of expectations. Furthermore, attention is paid to the fact that planning and coordination problems have not been satisfactorily resolved. A comparison with a control group from major European countries is then used to determine whether one can talk meaningfully in the German context of particular success stories in countering fluctuations in business cycles, the development of governmental debt and of legal objectives with respect to “price level stability”, “high levels of employment”, “current account equilibrium” and “satisfactory economic growth”. It becomes evident that government debt and unemployment have risen more in Germany and that growth rates have declined more sharply than in the countries on which the comparison is based. After discussing the hypotheses for explaining the weak German growth, growth accounting demonstrates that changes in the demographic structure, the substantial shortening of working hours and early retirement, blunders in the reunification process and an aggressive wage policy on the part of trade unions, particularly in the seventies, are the main reasons for low growth. This wage policy was triggered by the expectation of the trade unions that, with the aid of the Stability and Growth Law, the state would ensure full employment. In reality, however, the wage policy led to a reduced rate of investment and growth. This process could only be terminated by the restrained wage policy of the past few years.

scholarly journals Firm Growth and R&D in the Korean Pharmaceutical Industry

2019 ◽  
Vol 11 (10) ◽  
pp. 2865 ◽  
Author(s):  
Hyunseog Chung ◽  
Soomin Eum ◽  
Chulung Lee
Keyword(s):  
Growth Rate ◽  
Pharmaceutical Industry ◽  
Firm Growth ◽  
Negative Relationship ◽  
High Growth ◽  
Sales Growth ◽  
Young Firms ◽  
The Government ◽  
The Impact ◽  
Positive Effect

We explore the impact of research and development (R&D) on sales growth rate with firm-specific factors under the Korean pharmaceutical industry structure using listed Korea pharmaceutical company data from 2007 to 2018 with the quantile regression technique. We find that R&D intensity has a positive effect on firm growth rate while R&D scale a negative effect on the firm growth rate at the upper quantile, whereas the result is opposite at the lower quantile. Firm size has a mixed relationship with sales growth at the upper quantile, thus Gibrat’s law is rejected in the Korean pharmaceutical industry. Firm age has a negative relationship with the sales growth rate at the upper quantile, which shows the consistent result with previous research that young firms grow faster. Patent persistence has a negative relationship with sales growth at the upper quantile, while a positive effect at the lower quantile. We show that young firms and firms with high R&D intensity contribute to the high growth rate, while the relationship is not clear at the lower quantile. Therefore, policy implication in this research is that the government should pay attention to encouraging and supporting R&D investment activities and small firms as well as consider ways to enhance patent rights.

THE IMPACTS OF GLOBALIZATION ON THE LABOR SHARE: EVIDENCE FROM ASIA

2020 ◽  
Vol 65 (supp01) ◽  
pp. 57-73
Author(s):  
XIAOSHAN HU ◽  
GUANGHUA WAN ◽  
JING WANG
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
World Wide ◽  
Trade Openness ◽  
Labor Income ◽  
Significant Determinant ◽  
Outward Fdi ◽  
Labor Share ◽  
The Impact

The decline in the share of labor income — an indicator of functional income distribution — has contributed to rising income inequality world-wide. Despite a growing literature, little is known about the effects of globalization on the labor share or inequality in Asia where some of the economies are most globalized. Applying fixed-effect regressions to panel data from 29 Asian economies over the period from 1980 to 2014, we focus on the impacts of globalization on the labor share in Asia where globalization is measured by trade openness and FDI. The modeling results show that trade openness is a significant determinant of the labor share. More specifically, the impact of export is significantly negative and the impact of import is positive. In terms of FDI, the coefficient of the inward FDI is significantly positive and that of the outward FDI is significantly negative in developing countries only.

Reclaiming Singapore's ‘Growth with Equity’ Social Compact

2015 ◽  
Vol 16 (2) ◽  
pp. 160-176 ◽  
Author(s):  
LILY ZUBAIDAH RAHIM
Keyword(s):  
Income Inequality ◽  
Population Policy ◽  
High Growth ◽  
Foreign Workers ◽  
Income Disparity ◽  
Public Intellectuals ◽  
Cost Of Living ◽  
Income Disparities ◽  
Social Compact ◽  
The Impact

AbstractSingapore's long-serving People's Action Party (PAP) government suffered from a major electoral setback in the 2011 general election and subsequent by-elections. The high-growth population policy, underpinned by the influx of migrants and foreign workers, has strongly fuelled the groundswell of public discontent and is commonly perceived to have contributed to widening income disparities, wage stagnation, and cost of living pressures. This article attempts to make sense of the PAP leadership's dogged commitment to the high-growth population policy despite the electoral backlashes and policy criticisms by prominent public intellectuals and others closely connected to the PAP establishment. It considers Singapore's high-growth population policy and widening income disparity within the context of the authoritarian developmental state's shift away from the ‘growth with equity’ social compact. The article also examines the impact of widening income inequality and other policy lapses on the legitimacy of the PAP government as the clamor for a renewed social compact based on ‘growth with equity’ gathers momentum in the repoliticized polity.

Income Inequality and Health: Panel Data Evidence from Canada

2015 ◽  
Vol 15 (2) ◽  
pp. 927-959 ◽  
Author(s):  
Ehsan Latif
Keyword(s):  
Health Status ◽  
Income Inequality ◽  
Theil Index ◽  
Mean Deviation ◽  
Negative Effects ◽  
Absolute Income ◽  
Current Health ◽  
Current Health Status ◽  
The Impact ◽  
Positive Effect

AbstractUsing longitudinal data from the Canadian National Population Survey (1994–2006), this study examines the impact of income inequality on current health outcomes. The result suggests that once unobserved individual specific heterogeneity is controlled for, income inequality as measured by Gini Coefficient has no significant impact on current health status. This result holds true for contemporaneous income inequality as well as for lagged income inequalities. There are mixed results from the robustness check using various measures of income inequality. Decile Ratio (90P/10P) and Coefficient of Variation have no impacts on current health status. On the other hand, contemporaneous income inequality measured by Log Mean Deviation and Theil Index have significant negative effects on current health. All of the models suggest that absolute income has a significant positive effect on health status

scholarly journals Employee workplace representation in Belgium: effects on firm performance

2017 ◽  
Vol 38 (2) ◽  
pp. 130-144 ◽  
Author(s):  
Annette van den Berg ◽  
Arjen van Witteloostuijn ◽  
Olivier Van der Brempt
Keyword(s):  
Firm Performance ◽  
Trade Unions ◽  
Relevant Literature ◽  
Industrial Relations ◽  
Data Set ◽  
Mediation Effects ◽  
Content Type ◽  
Employee Representation ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this paper is to examine whether works councils (WCs) in Belgium have a positive effect on firm performance, notably productivity and profitability, while taking the role of trade unions into account. Design/methodology/approach The authors first introduce the typical Belgian industrial relations system, discussing the similarities and differences with neighboring countries. This is followed by a brief overview of the relevant literature. Subsequently, the impact of Belgian employee representation on firm performance is estimated by means of OLS, using a newly developed questionnaire administered among Belgian CEOs. Special attention is given to moderating and mediating effects. Findings The authors find that Belgian WCs have a small (direct) significantly positive effect on labor productivity, but not on profitability. The additional results of the mediation test show tentatively that WCs might affect profitability indirectly, through their impact on productivity. Despite trade unions’ dominance in practice, the findings reveal that their impact is insignificant. Research limitations/implications Although nationwide, rich and representative, as well as statistically valid, the data set is rather small (196 usable observations). The data set offers ample opportunities to further explore what makes effective Belgian WCs different from their non-effective counterparts. Originality/value The data set is unique, and combines subjective CEO with objective performance data. The data offer the opportunity to do a first study into the special case of Belgium, which has a distinct union-dominated IR regime. In this study, the focus is furthermore on the rarely studied WC-trade union interaction. In addition, subtle moderation and mediation effects are estimated.

scholarly journals Income inequality and financialization: a not so straightforward relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantinos Alexiou ◽  
Emmanouil Trachanas ◽  
Sofoklis Vogiazas
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Trade Unions ◽  
Fixed Effects ◽  
Credit Market ◽  
Market Regulation ◽  
Cross Sectional ◽  
Content Type ◽  
Panel Fixed Effects ◽  
The Impact

PurposeThe authors explore the impact of financialization on income inequality for a panel of 19 OECD countries over the period 2000–2017. The authors control for the effect of banking crises, credit market regulation and globalization, among other factors.Design/methodology/approachThe authors use three proxies for income inequality and four proxies for financialization. The authors employ a panel fixed effects approach using Driscoll and Kraay’s (1998) nonparametric covariance matrix estimator, which produces standard errors that are robust to general forms of cross-sectional dependence.FindingsThe authors provide evidence which to a great extent supports the view that the process of financialization has increased income inequality. In the disposable Gini specifications, two out of the four financialization measures are found to significantly contribute to rising inequality whilst in the specification with the market income Gini coefficient, three out of the four financialization proxies appear to adversely affect inequality. In the specification with the Gini coefficient based on manufacturing pay, the evidence is weak. Furthermore, trade unions appear to play a significant role in reducing inequality in two out of the three Gini specifications while the effect of credit market regulation is rather ambiguous.Originality/valueThe authors’ findings suggest a positive relationship between financialization and income inequality; however, the results depend on the proxies used to measure financialization and income inequality. The authors conclude that the process of financialization in triggering income inequality is complex and merits additional research.

scholarly journals The Impact of Income Inequality on Carbon Emissions in China: A Household-Level Analysis

2020 ◽  
Vol 12 (7) ◽  
pp. 2715 ◽  
Author(s):  
Yulin Liu ◽  
Min Zhang ◽  
Rujia Liu
Keyword(s):  
Mental Health ◽  
Income Inequality ◽  
Carbon Emissions ◽  
Time Preference ◽  
Consumption Patterns ◽  
Policy Makers ◽  
Household Level ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This study investigates the impact of income inequality on household carbon emissions in China using nationwide micro panel data. The effect is positive—households in counties with greater income inequality emit more—and remarkably robust to a battery of robustness checks. We also explore the roles that consumption patterns, time preference, and mental health play in the relationship between income inequality and household carbon emissions. The findings suggest that the change in consumption patterns caused by income inequality may be an important reason for the positive effect of inequality on household carbon emissions and that a lower time preference for consumption and improved mental health can mitigate the positive effect of income inequality on household carbon emissions. Furthermore, substantial differences are found among households at different income levels and households with heads of different ages. The findings of this study provide important insights for policy makers to reduce both inequality and emissions.

scholarly journals The Nordic Model in a Global Company Situated in Norway. Challenging Institutional Orders?

2012 ◽  
Vol 2 (4) ◽  
pp. 117 ◽  
Author(s):  
Elin Kvande ◽  
Hege Eggen Børve
Keyword(s):  
Trade Unions ◽  
Management Practices ◽  
Working Hours ◽  
Working Life ◽  
The United States ◽  
Working Time ◽  
Micro Model ◽  
Global Company ◽  
The Impact ◽  
Institutional Order

In this article, we explore the impact of internationalization as organizational processes where institutional actors meet in local contexts and negotiate the institutional order. The internationalization of working life implies that different traditions and practices meet and challenge each other. The focus is on how important elements of the Nordic micro model like cooperation between employees and employers and regulation of working hours are implemented in a global company situated in Norway. In general, it seems that employees and employers cooperate in line with this tradition in the Nordic micro model. Norwegian manager’s practices are described to be in accordance with Scandinavian management traditions, while managers from the United States appear to practice management consistent with the liberal working life model. The findings show a tension-filled clash between two different management practices, which indicates that the Nordic micro model in this field might be under pressure. Manager’s recommendation to the employees was not to become members of the trade union. The absence of trade unions in the organization implies that employees and employers are not cooperating on a collective level. This means that only parts of the regulatory arrangement related to participation and cooperation are implemented. Findings concerning working time and the relation to the institutional order represented by the Norwegian Work Environment Act indicate a clear tension between different institutional traditions in the organization. The company does not respect the Norwegian in working time regulations. These regulations are seen as counterproductive for a company that competes in the international market. This devaluation of the regulations in the Nordic model implies that the institutional order represented in the Nordic micro model is challenged.

scholarly journals 'Birds of a Feather Flock Together': The Impact of Choice of Spouse on Family Labor Income Inequality

Labour ◽  
2005 ◽  
Vol 19 (3) ◽  
pp. 491-515 ◽  
Author(s):  
Iulie Aslaksen ◽  
Tom Wennemo ◽  
Rolf Aaberge
Keyword(s):  
Income Inequality ◽  
Labor Income ◽  
Family Labor ◽  
The Impact
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