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The objective of this paper is to show that there is a trade-off between global inequality (between countries) and national inequality (within countries). We observed that when the former declines, the latter increases. Empirically, it is possible to observe a shift from higher global inequality to lower global inequality levels (and higher nationa...
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Citations
In order to interpret the levels and evolution of income distribution, we need to take into account the variety of capitalism modes considered and their respective capacity to maintain an effective social contract. This makes it possible to assess the importance of the social crises that these countries are going through as well as their capacity to respond to the new challenges posed by environmental degradation. The question is all the more difficult because this response must be coordinated on a global scale and implies a profound questioning of the management of globalization over the past three decades.
This paper analyses the role played by the flexibilization of labour markets
on functional income distribution. Specifically, we analyse whether
employment protection legislation affects the evolution of labour income
share, measured by the size of compensation of employees as a percentage of
GDP, the sum of wages and salaries as a percentage of GDP and the size of
the adjusted wage share, in twenty European economies. Our study’s results
show that the evolution of labour income share is explained by the economic
growth, the growth of employment and unemployment rates, and the growth of
real wages. Regarding the role played by the flexibility of the labour
market, and specifically of the employment protection legislation, only
employment protection for temporary workers has a significant impact on the
evolution of labour shares. Our results show that stricter provisions on the
use of fixed-term and temporary agency contracts have a positive impact on
the growth of labour shares.
The paper analyses the determinant elements of the evolution of labour income
share, measured by the size of compensation of employees as a percentage of
GDP in twenty European economies. In doing so, special attention is paid to
the impact of employment protection legislation. Our study’s results show
that the evolution of labour income share is explained by the economic
growth, the growth of employment and unemployment rates, and the growth of
real wages. Regarding employment protection, only employment protection for
temporary workers matters. Our results shows that stricter provisions on the
use of fixed-term and temporary agency contracts have a positive impact on
the growth of the labour shares.
