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Institutions, models of capitalism and inequality in income distribution: an empirical investigation

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Article

Antonelli, Gilberto ; Calia, Pinuccia P. ; Guidetti, Giovanni

Socio-Economic Review

2019

17

3

July

651-685

income distribution ; social inequality ; low income ; capitalism ; data analysis

OECD countries

Income distribution

https://doi.org/10.1093/ser/mwx059

English

Bibliogr.;Charts;Statistics

"The article analyses the role of institutions in the determination of income inequality in a sample of OECD countries. Basing on the seminal approach by Amable, the article discusses the theoretical definition of model of capitalism. The basic idea is that each model of capitalism is defined by the cobweb of complementary relationships established among different institutions. Using a set of statistical indicators of the operation of institutions in two different years, 1995 and 2010, the empirical analysis points out five models of capitalism and exhibits how their composition has changed in this lapse of 15 years. In the following sections of the article, we investigate the role played by the model of capitalism in the determination of income distribution, measured through a standard Gini index. After controlling for a set of variables, the econometric evidence shows that different models of capitalism present significantly different levels of income inequality."

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