IDEAS home Printed from https://ideas.repec.org/a/cpn/umkeip/v18y2019i3p365-377.html
   My bibliography  Save this article

Labour market institutions and income inequalities across the European Union

Author

Listed:
  • Malgorzata Szczepaniak

    (Nicolaus Copernicus University in Torun)

  • Agnieszka Szulc-Obloza

    (Nicolaus Copernicus University in Torun)

Abstract

Motivation: Labour market institutions are currently considered as the basic condition for high level of economic development. Decreasing income inequalities on contrary are among the main objectives of macroeconomic policy in the European Union (Europe 2020 Strategy), because unequal distribution may result in lower growth and development rates. The research done in the article is consisted with the institutional theory (D.C. North’s interpretation). Aim: The main aim of the article is to analyse the relations between labour market institutions and income inequalities. There is also an attempt to answer the question if rigid labour market institutions reduce income inequality in European countries. This article provides a taxonomic analysis of labour market institutions in the EU countries. Data from Eurostat, World Bank, Fraser Institute, OECD are used. The article covers selected years: 2010 and 2016. Results: The countries were grouped according to the level of labour market institutions and in regard to income inequalities. The differences between the members of the groups were analysed between 2010 and 2016. Article ends with conclusions connected with rules shaping decisions on the labour market as well as relations between inequalities and institutions.

Suggested Citation

  • Malgorzata Szczepaniak & Agnieszka Szulc-Obloza, 2019. "Labour market institutions and income inequalities across the European Union," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 365-377, September.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:3:p:365-377
    DOI: 10.12775/EiP.2019.025
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/EiP.2019.025
    Download Restriction: no
    File URL: https://libkey.io/10.12775/EiP.2019.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    2. Douglass C. North, 1993. "Institutions, Transaction Costs and Productivity in the Long Run," Economic History 9309004, University Library of Munich, Germany.
    3. Holmlund, Bertil, 2014. "What do labor market institutions do?," Labour Economics, Elsevier, vol. 30(C), pages 62-69.
    4. Daron Acemoglu & James A. Robinson, 2013. "Economics versus Politics: Pitfalls of Policy Advice," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 173-192, Spring.
    5. Janine Berg, 2015. "Labour market institutions: the building blocks of just societies," Chapters, in: Janine Berg (ed.), Labour Markets, Institutions and Inequality, chapter 1, pages 1-36, Edward Elgar Publishing.
    6. Jean-Marc Burniaux & Flavio Padrini & Nicola Brandt, 2006. "Labour Market Performance, Income Inequality and Poverty in OECD countries," OECD Economics Department Working Papers 500, OECD Publishing.
    7. Florence Jaumotte & Carolina Osorio Buitron, 2015. "Inequality and Labor Market Institutions," IMF Staff Discussion Notes 15/14, International Monetary Fund.
    8. Rigmar Osterkamp, 2016. "International Experiences on Labor Market Reforms," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 31-34, April.
    9. Janine Berg (ed.), 2015. "Labour Markets, Institutions and Inequality," Books, Edward Elgar Publishing, number 16143.
    10. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    11. Edward Amadeo & Valeria Pero, 2000. "Adjustment, stabilisation and the structure of employment in Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 36(4), pages 120-148.
    12. Ms. Florence Jaumotte & Ms. Carolina Osorio-Buitron, 2015. "Inequality and Labor Market Institutions," IMF Staff Discussion Notes 2015/014, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Małgorzata Szczepaniak & Agnieszka Szulc-Obloza, 2021. "Associations Between Job Satisfaction and Employment Protection in Selected European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 542-554.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kevin Pineda‐Hernández & François Rycx & Mélanie Volral, 2022. "How collective bargaining shapes poverty: New evidence for developed countries," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 895-928, December.
    2. Kilman, Josefin, 2020. "Monetary Policy and Income Inequality in the United States: The Role of Labor Unions," Working Papers 2020:10, Lund University, Department of Economics, revised 20 Sep 2022.
    3. Meszaros, John, 2018. "Inequality and unionization within the United States," The Quarterly Review of Economics and Finance, Elsevier, vol. 67(C), pages 326-333.
    4. Kyoji Fukao & Cristiano Perugini, 2021. "The Long‐Run Dynamics of the Labor Share in Japan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 445-480, June.
    5. Christopher Hartwell, 2022. "Institutions and trade‐related inequality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3246-3264, July.
    6. repec:spo:wpmain:info:hdl:2441/50jd34uldo9jioklc7b0dpu4ej is not listed on IDEAS
    7. Giovanni DOSI & Maria Enrica VIRGILLITO, 2019. "Whither the evolution of the contemporary social fabric? New technologies and old socio‐economic trends," International Labour Review, International Labour Organization, vol. 158(4), pages 593-625, December.
    8. Giovanni Dosi & Marcelo C. Pereira & Andrea Roventini & Maria Enrica Virgillito, 2016. "The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model," LEM Papers Series 2016/27, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Hackl, Andreas, 2018. "Mobility equity in a globalized world: Reducing inequalities in the sustainable development agenda," World Development, Elsevier, vol. 112(C), pages 150-162.
    10. Henry S Farber & Daniel Herbst & Ilyana Kuziemko & Suresh Naidu, 2021. "Unions and Inequality over the Twentieth Century: New Evidence from Survey Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1325-1385.
    11. Dirk Bezemer & Anna Samarina, 2019. "Debt shift, financial development and income inequality," DNB Working Papers 646, Netherlands Central Bank, Research Department.
    12. Islam, Md. Rabiul & Madsen, Jakob B. & Doucouliagos, Hristos, 2018. "Does inequality constrain the power to tax? Evidence from the OECD," European Journal of Political Economy, Elsevier, vol. 52(C), pages 1-17.
    13. Andrea Coveri & Mario Pianta, 2019. "The Structural Dynamics of Income Distribution:Technology, Wages and Profits," Working Papers 1901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    14. Tonia NOVITZ, 2020. "Engagement with sustainability at the International Labour Organization and wider implications for collective worker voice," International Labour Review, International Labour Organization, vol. 159(4), pages 463-482, December.
    15. Brancaccio, Emiliano & Garbellini, Nadia & Giammetti, Raffaele, 2018. "Structural labour market reforms, GDP growth and the functional distribution of income," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 34-45.
    16. Romain Duval & Prakash Loungani, 2021. "Designing Labor Market Institutions in Emerging Market and Developing Economies: A Review of Evidence and IMF Policy Advice," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(1), pages 31-83, March.
    17. Farhad Taghizadeh‐Hesary & Naoyuki Yoshino & Sayoko Shimizu, 2020. "The impact of monetary and tax policy on income inequality in Japan," The World Economy, Wiley Blackwell, vol. 43(10), pages 2600-2621, October.
    18. Karsten Kohler & Alexander Guschanski & Engelbert Stockhammer, 2019. "The impact of financialisation on the wage share: a theoretical clarification and empirical test," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(4), pages 937-974.
    19. Bernardo A. Furtado & Miguel A. Fuentes & Claudio J. Tessone, 2019. "Policy Modeling and Applications: State-of-the-Art and Perspectives," Complexity, Hindawi, vol. 2019, pages 1-11, February.
    20. Behringer, Jan & Gechert, Sebastian & Horn, Gustav A. & Rietzler, Katja & Stein, Ulrike & Tiefensee, Anita, 2017. "Schriftliche Stellungnahme zur öffentlichen Anhörung des Sozialausschusses des Landtags Mecklenburg-Vorpommern am 29. November 2017 zum Thema "Armut und Reichtum" (Ausschussdrucksache 7/225)," WSI Policy Briefs 18, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    21. Mélanie Laroche & Frédéric Lauzon Duguay & Patrice Jalette, 2019. "When Collective Bargaining Leads to Inequality: Determinants of Two-Tier Provisions in Canadian Collective Agreements," ILR Review, Cornell University, ILR School, vol. 72(4), pages 871-896, August.

    More about this item

    Keywords

    income inequalities; labour market; institutions;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpn:umkeip:v:18:y:2019:i:3:p:365-377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Miroslawa Buczynska (email available below). General contact details of provider: http://www.wydawnictwoumk.pl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.