Income inequality and financialization: a not so straightforward relationship

نویسندگان

چکیده

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

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ژورنال

عنوان ژورنال: Journal of Economic Studies

سال: 2021

ISSN: ['0144-3585', '1758-7387']

DOI: https://doi.org/10.1108/jes-05-2020-0202