Documents Álvarez, Ignacio 3 results

"Using firm-level data for the period 2004 to 2013, this article examines the connection between the financialization of French corporations and functional income distribution in the non-finance sector of the economy. Financialization of French non-financial corporations has increased their dependence on earnings through financial channels, and diminished labor bargaining power in income distribution. We examine the effects of these financial revenues on wage share using a panel data model of 6980 French non-financial firms. We conclude that increased dependence on financial profits is likely to decrease wage share in non-financial corporations. Moreover, this variable is more influential in our model than the other variables usually identified by the literature as determinants of functional income distribution, such as trade openness or labor market institutions. Of the determinants traditionally emphasized by the literature, only technological change has a greater impact than financialization."

"This article examines the extent to which “inclusive growth” proposals made by various international organizations are consistent with their own objectives. The authors identify two commonly overlooked “missing links”: functional income distribution and collective bargaining coverage. Using a panel of 42 advanced countries for the period 1990–2018, they find that the first has an important influence on income inequality and the second plays a significant role in explaining increases in the wage share and reductions in income inequality. Consequently, these two factors must be fully integrated into the policy debate of international organizations if inclusive growth is to be successfully promoted."