Open Access

Financialization and the Labor Share of Income

   | Dec 21, 2019

Cite

ABEL, J. R., DEY, I. and GABE, T. M. (2012). Productivity and the Density of Human Capital, Journal of Regional Science, 52(4), 562-586. DOI: 10.1111/j.1467-9787.2011.00742.x10.1111/j.1467-9787.2011.00742.xOpen DOISearch in Google Scholar

ACEMOGLU, D. (2003). Patterns of Skill Premia, The Review of Economic Studies, 70(2), 199-230. DOI: 10.1111/1467-937X.0024210.1111/1467-937X.00242Open DOISearch in Google Scholar

ACEMOGLU, D. and AUTOR, D. (2011). Skills, Tasks and Technologies: Implications for Employment and Earnings, in D. Card and O. Ashenfelter (eds.), Handbook of Labor Economics, 1043-1171, Amsterdam: Elsevier.Search in Google Scholar

AIZENMAN, J. (2018). A modern reincarnation of Mundell-Fleming’s trilemma, Economic Modelling, in press, corrected proof.10.2139/ssrn.3135405Search in Google Scholar

ALCALA, F. and CICCONE, A. (2004). Trade and Productivity, The Quarterly Journal of Economics, 119(2), 613-646. DOI: 10.1162/003355304138213910.1162/0033553041382139Open DOISearch in Google Scholar

ANDERSON, E. (2005). Openness and inequality in developing countries: A review of theory and recent evidence, World Development, 33(7), 1045-1063.10.1016/j.worlddev.2005.04.003Search in Google Scholar

ANDERSON, A. S. and NIELSEN, F. (2002). Globalization and the Great U-Turn: Income Inequality Trends in 16 OECD Countries, American Journal of Sociology, 107(5), 1244-1299. DOI: 10.1016/j.worlddev.2005.04.00310.1016/j.worlddev.2005.04.003Open DOISearch in Google Scholar

AUTOR, D. H., KATZ, L. F., and KRUEGER, A. B. (1998). Computing Inequality: Have Computers Changed the Labor Market?, The Quarterly Journal of Economics, 113(4), 1169-1214.10.1162/003355398555874Search in Google Scholar

BARAN, P. (1957). The Political Economy of Growth. London and New York: Monthly Review Press.Search in Google Scholar

BASU, P. and GUARIGLIA, A. (2007). Foreign Direct Investment, inequality, and growth, Journal of Macroeconomics, 29(4), 824-839. DOI: 10.1016/j.jmacro.2006.02.00410.1016/j.jmacro.2006.02.004Open DOISearch in Google Scholar

BECK, N. and KATZ, J. N. (1995). What to do (and not to do) with Time-Series Cross-Section Data, The American Political Science Review, 89(3), 634-647. DOI: 10.2307/208297910.2307/2082979Open DOISearch in Google Scholar

BENTOLILA, S. and SAINT-PAUL, G. (2003). Explaining Movements in the Labor Share, The B.E. Journal of Macroeconomics, De Gruyter, 3(1), 1-33, October.10.2202/1534-6005.1103Search in Google Scholar

BERMAN, E., BOUND, J., and GRILICHES, Z. (1994). Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufacturers, The Quarterly Journal of Economics, 109(2), 367-397. DOI: 10.2307/211846710.2307/2118467Open DOISearch in Google Scholar

BLAU, B. M. (2018). Income inequality, poverty, and the liquidity of stock markets, Journal of Development Economics, 130, 113-126. DOI: 10.1016/j.jdeveco.2017.10.00610.1016/j.jdeveco.2017.10.006Open DOISearch in Google Scholar

BOYER, R. (2000). Is a Finance-led growth regime a viable alternative to Fordism? A preliminary analysis, Economy and Society, 29(1), 111-145. DOI: 10.1080/03085140036058710.1080/030851400360587Open DOISearch in Google Scholar

BUMANN, S. and LENSINK, R. (2016). Capital account liberalization and income inequality, Journal of International Money and Finance, 61, 143-162. DOI: 10.1016/j.jimonfin.2015.10.00410.1016/j.jimonfin.2015.10.004Open DOISearch in Google Scholar

CHEN, X., LIN, S. and REED, W. R. (2006). Another Look at What to Do with Time-Series Cross-Section Data, Working Paper No. 04/2006, Department of Economics, College of Business and Economics, Christchurch: New Zealand.Search in Google Scholar

CHINN, M. D. and ITO, H. (2002). Capital Account Liberalization, Institutions and Financial Development: Cross Country Evidence, National Bureau of Economic Research, NBER Working Paper Series No: 8967, June.10.3386/w8967Search in Google Scholar

CHOI, C. (2006). Does foreign direct investment affect domestic income inequality?, Applied Economics Letters, 13(12), 811-814. DOI: 10.1080/1350485050040063710.1080/13504850500400637Open DOISearch in Google Scholar

CRESPI, G., CRISCUOLO, C. and HASKEL, J. (2008). Productivity, exporting, and the learning-by-exporting hypothesis: direct evidence from UK firms, Canadian Journal of Economics, 41(2), 619-637. DOI: 10.1111/j.1540-5982.2008.00479.x10.1111/j.1540-5982.2008.00479.xOpen DOISearch in Google Scholar

CROTTY, J. (2005). The Neoliberal Paradox: The Impact of Destructive Product Market Competition and ‘Modern’ Financial Markets on Nonfinancial Corporation Performance in the Neoliberal Era, In. G. EPSTEIN (ed.), Financialization and the World Economy, Cheltenham and Northampton: Edward Elgar, 77-110.Search in Google Scholar

DAS, M. and MOHAPATRA, S. (2003). Income inequality: the aftermath of stock market liberalization in emerging markets, Journal of Empirical Finance, 10(1-2), 217-248. 10.1016/S0927-5398(02)00025-7Search in Google Scholar

DAVIS, D. R. (1996). Trade Liberalization and Income Distribution, NBER Working Papers, No. 5693, National Bureau of Economic Research.Search in Google Scholar

DE LOECKER, J. (2013). Detecting Learning by Exporting, American Economic Journal: Microeconomics, 5(3), 1-21.10.1257/mic.5.3.1Search in Google Scholar

DREHER, A. (2006). Does globalization affect growth? Evidence from a new index of globalization, Applied Economics, 38(10), 1091-1110. DOI: 10.1080/0003684050039207810.1080/00036840500392078Search in Google Scholar

DRISCOLL, J. C. and KRAAY, A. C. (1998). Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data, Review of Economics and Statistics, 80(4), 549-560. DOI: 10.1162/00346539855782510.1162/003465398557825Open DOISearch in Google Scholar

DUMENIL, G. and LÉVY, D. (2004). Capital Resurgent: Roots of the Neoliberal Revolution. Cambridge, Massachusetts and London: Harvard University Press.Search in Google Scholar

DUMENIL, G. and LÉVY, D. (2011). The Crisis of Neoliberalism. Cambridge, Massachusetts and London: Harvard University Press.Search in Google Scholar

DÜNHAUPT, P. (2013). The effect of financialization on labor’s share of income, Institute for International Political Economy Berlin, Working Paper No. 17/2003.Search in Google Scholar

DÜNHAUPT, P. (2017). Determinants of labour’s income share in the era of financialisation, Cambridge Journal of Economics, 41, 283-306. DOI: 10.1093/cje/bew02310.1093/cje/bew023Open DOISearch in Google Scholar

EICHENGREEN, B., GULLAPALLI, R. and PANIZZA, U. (2011). Capital account liberalization, financial development and industry growth: a synthetic view, Journal of International Money and Finance, 30(6), 1090-1106. DOI: 10.1016/j.jimonfin.2011.06.00710.1016/j.jimonfin.2011.06.007Open DOISearch in Google Scholar

EPSTEIN, G. (2005). Introduction: Financialization and the World Economy, In G. EPSTEIN, (ed.), Financialization and the World Economy, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, 3-16.Search in Google Scholar

FAVILUKIS, J. (2013). Inequality, stock market participation, and the equity premium, Journal of Financial Economics, 107(3), 740-759. DOI: 10.1016/j.jfineco.2012.10.00810.1016/j.jfineco.2012.10.008Open DOISearch in Google Scholar

FEENSTRA, R. C. and HANSON, G. H. (1996). Globalization, Outsourcing, and Wage Inequality, The American Economic Review, 86(2), 240-24510.3386/w5424Search in Google Scholar

FEENSTRA, R. C. and HANSON, G. H. (1997). Foreign direct investment and relative wages: Evidence from Mexico’s maquiladoras, Journal of International Economics, 42(3-4), 371-393. DOI: 10.1016/S0022-1996(96)01475-410.1016/S0022-1996(96)01475-4Open DOISearch in Google Scholar

FEENSTRA, R. C., INKLAAR, R. and TIMMER, M. P. (2015). The Next Generation of the Penn World Table, American Economic Review, 105(10), 3150-3182. DOI: /10.1257/aer.20130954Search in Google Scholar

FINE, B. (2010). Neoliberalism as financialisation, Alfredo Saad-Filho and Galip L. Yalman (eds.), Economic Transitions to Neoliberalism in Middle-income Countries: Policy dilemmas, economic crises, forms of resistance, London and New York: Routledge, 11-23.Search in Google Scholar

FOSTER, J. B. (2006). Monopoly-Finance Capital, Monthly Review, 58(7), December.10.14452/MR-058-07-2006-11_1Search in Google Scholar

FOSTER, J. B. (2010). The Financialization of Accumulation, Monthly Review, 62(5), October.10.14452/MR-062-05-2010-09_1Search in Google Scholar

FOSTER, J. B. and MCCHESNEY, R. W. (2009). Monopoly-Finance Capital and the Paradox of Accumulation, Monthly Review, 61(5), October.10.14452/MR-061-05-2009-09_1Search in Google Scholar

GLYN, A. (2006). Capitalism Unleashed: Finance Globalization and Welfare. Oxford and New York: Oxford University Press.Search in Google Scholar

GOLDBERG, P. K. and PAVCNIK N. (2004). Trade, Inequality and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries, Brookings Trade Forum, 223-269.10.1353/btf.2005.0006Search in Google Scholar

GOLDBERG, P. K. and PAVCNIK, N. (2007). Distributional Effects of Globalization in Developing Countries, Journal of Economic Literature, 45(1), 39-82. DOI: 10.1257/jel.45.1.3910.1257/jel.45.1.39Open DOISearch in Google Scholar

GOLLIN, D. (2002). Getting Income Shares Right, Journal of Political Economy, 110(2), 458-474. DOI: 10.1086/33874710.1086/338747Open DOISearch in Google Scholar

GOPINATH, M. and CHEN, W. (2003). Foreign direct investment and wages: a cross-country analysis, The Journal of International Trade & Economic Development, 12(3), 285-309. DOI: 10.1080/096381903200013206710.1080/0963819032000132067Open DOISearch in Google Scholar

GUERRIERO, M. (2012). The Labour Share of Income around the World: Evidence from a Panel Dataset, Institute for Development Policy and Management (IDPM), Development Economics and Public Policy Working Paper Series No: 32.Search in Google Scholar

HAAN, J., PLENINGER, R. and STURM, J. E. (2018). Does the impact of financial liberalization on income inequality depend on financial development? Some new evidence, Applied Economics Letters, 25(5), 313-316. DOI: 10.1080/13504851.2017.131955410.1080/13504851.2017.1319554Open DOISearch in Google Scholar

HALABY, C. N. (2004). Panel Models in Sociological Research: Theory into Practice, Annual Review of Sociology, 30, 507-544. DOI: 10.1146/annurev.soc.30.012703.11062910.1146/annurev.soc.30.012703.110629Open DOISearch in Google Scholar

HARRISON, A. (2005). Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence, Munich Personal RePEc Archive, MPRA Paper No: 39649, April.Search in Google Scholar

HEIN, E. (2006). Interest, Debt and Capital Accumulation-A Kaleckian Approach, International Review of Applied Economics, 20(3), 337-352. DOI: 10.1080/0269217060073612810.1080/02692170600736128Open DOISearch in Google Scholar

HEIN, E. (2007). Interest Rate, Debt, Distribution and Capital Accumulation in a Post-Kaleckian Model, Metroeconomica, 58(2), 310-339. DOI: 10.1111/j.1467-999X.2007.00270.x10.1111/j.1467-999X.2007.00270.xOpen DOISearch in Google Scholar

HEIN, E. (2008). Money, Distribution Conflict and Capital Accumulation. Contributions to Monetary Analysis. Basingstoke: Palgrave Macmillan.10.1057/9780230595606Search in Google Scholar

HEIN, E. (2010a). A Keynesian perspective on ‘financialisation, in P. ARESTIS, and M. SAWYER (eds.), 21st Century Keynesian Economics, Basingstoke: Palgrave Macmillan.10.1057/9780230285415_4Search in Google Scholar

HEIN, E. (2010b). Shareholder Value Orientation, Distribution and Growth - Short- and Medium-Run Effects in a Kaleckian Model, Metroeconomica, 61(2), 302-332. DOI: 10.1111/j.1467-999X.2009.04072.x10.1111/j.1467-999X.2009.04072.xOpen DOISearch in Google Scholar

HEIN, E. (2012). The Macroeconomics of Finance-Dominated Capitalism-and its Crisis. Cheltenham: Edward Elgar.10.4337/9781781009161Search in Google Scholar

HEIN, E. (2015). Finance-dominated capitalism and re-distribution of income: a Kaleckian perspective, Cambridge Journal of Economics, 39, 907-934. DOI: 10.1093/cje/bet03810.1093/cje/bet038Open DOISearch in Google Scholar

HEIN, E. and VAN TREECK, T. (2010a). Financialisation and Rising Shareholder Power in Kaleckian/Post-Kaleckian Models of Distribution and Growth, Review of Political Economy, 22(2), 205-233. DOI: 10.1080/0953825100366562810.1080/09538251003665628Open DOISearch in Google Scholar

HEIN, E. and VAN TREECK, T. (2010b). Financialisation in Post-Keynesian Models of Distribution and Growth-A Systematic Review, in M. SETTERFIELD (ed.), Handbook of Alternative Theories of Economic Growth, Cheltenham: Edward Elgar.Search in Google Scholar

HERZER, D. and NUNNENKAMP, P. (2013). Inward and outward FDI and income inequality: evidence from Europe, Review of World Economics, 149(2), 395-422. DOI: 10.1007/s10290-013-0148-310.1007/s10290-013-0148-3Open DOISearch in Google Scholar

HILFERDING, R. [1981] (2006). Finance-Capital: A Study of the Latest Phase of Capitalist Development, 2006 New Edition, London and Boston: Routledge & Kegan Paul.Search in Google Scholar

ILO (2011). World of Work Report 2011: Making markets work for jobs. Geneva: ILO.Search in Google Scholar

IM, K. S., PESARAN, M. H. and SHIN, Y. (2003). Testing for unit roots in heterogeneous panels, Journal of Econometrics, 115(1), 53-74. DOI: 10.1016/S0304-4076(03)00092-710.1016/S0304-4076(03)00092-7Open DOISearch in Google Scholar

ITO, K. (2012). Sources of Learning-by-Exporting Effects: Does Exporting Promote Innovation, Economic Research for ASEAN and East Asia (ERIA), Working Papers DP-2012.Search in Google Scholar

JAYADEV, A. (2007). Capital account openness and the labour share of income, Cambridge Journal of Economics, 31(3), 423-443. DOI: 10.1093/cje/bel03710.1093/cje/bel037Open DOISearch in Google Scholar

KALECKI, M. [1954] (2003). Theory of Economic Dynamics. London: George Allen and Unwin.Search in Google Scholar

KINDLEBERGER, C. P. and ALIBER, R. (2005). Manias, Panics and Crashes: A History of Financial Crises. Basingstoke: Palgrave Macmillan.10.1057/9780230628045Search in Google Scholar

KMENTA, J. (1986). Elements of Econometrics. 2nd ed. New York: Macmillan.Search in Google Scholar

KRIPPNER, G. R. (2011). Capitalizing on Crisis: The Political Origins of the Rise of Finance. Cambridge, Massachusetts and London: Harvard University Press.Search in Google Scholar

KRISTAL, T. (2010). Good Times, Bad Times: Postwar Labor’s Share of National Income in Capitalist Democracies, American Sociological Review, 75(5), 729-763. DOI: 10.1177/000312241038264010.1177/0003122410382640Open DOISearch in Google Scholar

KRUEGER, A. B. (1999). Measuring Labor’s Share, National Bureau of Economic Research, NBER Working Paper No: 7006, March.Search in Google Scholar

KUZNETS, S. (1955). Economic Growth and Income Inequality, American Economic Review, 45(1), 1-28.Search in Google Scholar

LAPAVITSAS, C. (2010). Financialisation and Capitalist Accumulation: Structural Accounts of the Crisis of 2007-9, Research on Money and Finance, Discussion Papers No: 16.Search in Google Scholar

LAPAVITSAS, C. (2013). The financialization of capitalism: ‘Profiting without producing’, City, 17(6), 792-805. DOI: 10.1080/13604813.2013.85386510.1080/13604813.2013.853865Open DOISearch in Google Scholar

LAVOIE, M. (1993). A post-classical view of money, interest, growth and distribution, in G. Mongiovi and C. Ruhl (eds.), Macroeconomic Theory: Diversity and Convergence, Cambridge: Cambridge University Press.Search in Google Scholar

LAVOIE, M. (2014). Post-Keynesian Economics: New Foundations. Cheltenham: Edward Elgar.10.4337/9781783475827Search in Google Scholar

LAZONICK, W. and O’SULLIVAN, M. (2000). Maximizing shareholder value: a new ideology for corporate governance, Economy and Society, 29(1), 13-35. DOI: 10.1080/03085140036054110.1080/030851400360541Open DOISearch in Google Scholar

LEE, E. and VIVARELLI, M. (2004). Understanding Globalization, Employment and Poverty Reduction. New York: Palgrave Macmillan.Search in Google Scholar

LEVIN, A., LIN, C. F. and CHU, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties, Journal of Econometrics, 108(1), 1-24. DOI: 10.1016/S0304-4076(01)00098-710.1016/S0304-4076(01)00098-7Open DOISearch in Google Scholar

MARTIN, R. (2002). Financialization of Daily Life. Philadelphia: Temple University Press.Search in Google Scholar

MESCHI, E. and VIVARELLI, M. (2009). Trade and Income Inequality in Developing Countries, World Development, 37(2), 287-302. DOI: 10.1016/j.worlddev.2008.06.00210.1016/j.worlddev.2008.06.002Open DOISearch in Google Scholar

MILBERG, W. and WINKLER, D. (2013). Outsourcing Economics: Global Value Chains in Capitalist Development. Cambridge: Cambridge University Press.10.1017/CBO9781139208772Search in Google Scholar

NORRIS, P. (2000). Global governance and cosmopolitan citizens, In J. S. NYE and J. D. DONAHUE (eds.), Governance in a Globalizing World, Washington DC: Brookings Institution Press, 155-177.Search in Google Scholar

Palley, T. I. (2007). Financialization: What It Is and Why It Matters, The Levy Economics Institute Working Paper, No. 525, December.Search in Google Scholar

PARKS, R. W. (1967). Efficient Estimation of a System of Regression Equations when Disturbances are Both Serially and Contemporaneously Correlated, Journal of the American Statistical Association, 62(318), 500-509. DOI: 10.1080/01621459.1967.1048292310.1080/01621459.1967.10482923Open DOISearch in Google Scholar

PIVA, M. and VIVARELLI, M. (2004). Technological change and employment: Some micro evidence from Italy, Applied Economics Letters, 11(6), 373-376. DOI: 10.1080/135048504200022822210.1080/1350485042000228222Open DOISearch in Google Scholar

POLANYI, K. (2001). The Great Transformation: The Political and Economic Origins of Our Times. Boston: Beacon Press.Search in Google Scholar

REINHARDT, D., RICCI, L. A. and TRESSEL, T. (2013). International capital flows and development: Financial openness matters, Journal of International Economics, 91(2), 235-251. DOI: 10.1016/j.jinteco.2013.07.00610.1016/j.jinteco.2013.07.006Open DOISearch in Google Scholar

ROBBINS, D. (2003). The impact of trade liberalization upon inequality in developing countries - A review of theory and evidence, ILO Working Paper, No.13, International Labour Organization, Geneva.Search in Google Scholar

SAWHNEY, B. L. and DIPETRO, W. R. (2006). Stock Market Wealth and Income Inequality, The Journal of Business and Economic Studies, 12(1), 74-77.Search in Google Scholar

SAWYER, M. (2013). What Is Financialization?, International Journal of Political Economy, 42(4), 5-18. DOI: 10.2753/IJP0891-191642040110.2753/IJP0891-1916420401Open DOISearch in Google Scholar

SCHWERDT, G. and TURUNEN, J. (2007). Changes in Human Capital: Implications for Productivity Growth in the Euro Area. Ifo Working Paper, No: 53, December.Search in Google Scholar

SCHIFF, M. and WANG, Y. (2004). On the Quantity and Quality of Knowledge: The Impact of Openness and Foreign Research and Development on North-North and North-South Technology Spillovers, Policy Research Working Paper Series 3190, The World Bank.10.1596/1813-9450-3190Search in Google Scholar

SÖDERBOM, M. and TEAL, F. (2004). Openness and Human Capital as Sources of Productivity Growth: An Empirical Investigation, Development and Comp Systems 0409031, University Library of Munich, Germany.Search in Google Scholar

STOCKHAMMER, E. (2004). Financialisation and the slowdown of accumulation, Cambridge Journal of Economics, 28(5), 719-741. DOI: 10.1093/cje/beh03210.1093/cje/beh032Open DOISearch in Google Scholar

STOCKHAMMER, E. (2009). Determinants of functional income distribution in OECD countries, Macroeconomic Policy Institute Studies, 5/2009, September.Search in Google Scholar

STOCKHAMMER, E. (2010). Financialization and the Global Economy, PERI UMASS Working Paper, No. 240, University of Massachusetts, Amherst.Search in Google Scholar

THOENIG, M. and Verdier, T. (2003). A Theory of Defensive Skill-Biased Innovation and Globalization, American Economic Review, 93(3), 709-728.10.1257/000282803322157052Search in Google Scholar

TSAI, P. L. (1995). Foreign direct investment and income inequality: Further evidence, World Development, 23(3), 469-483. DOI: 10.1016/0305-750X(95)00136-Z10.1016/0305-750X(95)00136-ZOpen DOISearch in Google Scholar

VERHOOGEN, E. A. (2008). Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector, The Quarterly Journal of Economics, 123(2), 489-530. DOI: 10.1162/qjec.2008.123.2.48910.1162/qjec.2008.123.2.489Open DOISearch in Google Scholar

WILLIAMS, K. (2000). From shareholder value to present-day capitalism, Economy and Society, 29(1), 1-12. DOI: 10.1080/03085140036053210.1080/030851400360532Open DOISearch in Google Scholar

WOOD, A. (1994). North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World. Oxford: Clarendon Press.Search in Google Scholar

WOOD, A. (1997). Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom, The World Bank Economic Review, 11(1), 33-57.10.1093/wber/11.1.33Search in Google Scholar

WU, J. Y. and HSU, C. C. (2012). Foreign direct investment and income inequality: Does the relationship vary with absorptive capacity?, Economic Modelling, 29(6), 2183-2189. DOI: 10.1016/j.econmod.2012.06.01310.1016/j.econmod.2012.06.013Open DOISearch in Google Scholar

ZHU, S. C. and TREFLER, D. (2005). Trade and inequality in developing countries: a general equilibrium analysis, Journal of International Economics, 65(1), 21-48. DOI: 10.1016/j.jinteco.2003.11.00510.1016/j.jinteco.2003.11.005Open DOISearch in Google Scholar

eISSN:
1804-1663
Language:
English
Publication timeframe:
4 times per year
Journal Subjects:
Business and Economics, Political Economics, Economic Theory, Systems and Structures