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Financialisation and Income Inequality in OECD Nations:1995-2007

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  • BASAK KUS

    (Wesleyan University,Connecticut)

Abstract

This paper attempts to examine the link between financialisation and income inequality in advanced countries from a comparative perspective using data from 20 OECD countries over a period of 13 years (1995-2007). The initial regression results show an overall strong correlation between several of the financialisation indicators and income inequality net of conventional explanations including economic growth rate, unemployment, globalisation, left party power, social spending, union density, female participation in the labour market, and wage bargaining centralisation. The results also show that although financialisation has a positive association with income inequality in nations with strong as well as weak unions, the association is stronger in the latter.

Suggested Citation

  • Basak Kus, 2012. "Financialisation and Income Inequality in OECD Nations:1995-2007," The Economic and Social Review, Economic and Social Studies, vol. 43(4), pages 477-495.
    • Handle: RePEc:eso:journl:v:43:y:2012:i:4:p:477-495
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    Cited by:

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    2. Allen Hyde, 2018. "“Left behind?” Financialization and Income Inequality Between the Affluent, Middle Class, and the Poor," LIS Working papers 745, LIS Cross-National Data Center in Luxembourg.
    3. Dünhaupt, Petra, 2016. "Financialization and the crises of capitalism," IPE Working Papers 67/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    4. Max Haller & Anja Eder & Erwin Stolz, 2016. "Ethnic Stratification and Patterns of Income Inequality Around the World: A Cross-National Comparison of 123 Countries, Based on a New Index of Historic Ethnic Exploitation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1047-1084, September.
    5. Ron Wallace, 2017. "The Signature of Risk: Agent-based Models, Boolean Networks and Economic Vulnerability," Economic Thought, World Economics Association, vol. 6(1), pages 1-15, March.
    6. Olivier Godechot & Nils Neumann & Paula Apascaritei & István Boza & Martin Hällsten & Lasse Henriksen & Are Hermansen & Feng Hou & Jiwook Jung & Eunmi Melzer & Halil Mun & Matthew Sabanci & Max Soener, 2021. "Ups and Downs in Finance, Ups without Downs in Inequality," SciencePo Working papers Main hal-03462501, HAL.
    7. Bartak, Jakub & Jabłoński, Łukasz & Tomkiewicz, Jacek, 2022. "Does income inequality explain public debt change in OECD countries?," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 211-224.
    8. Olivier Godechot & Paula Apascaritei & István Boza & Martin Hallsten & Lasse Henriksen & Are Hermansen & Feng Hou & Jiwook Jung & Alena Křížková & Zoltán Lippényi & Elvira Marta & Silvia Maja Melzer &, 2021. "Size and evolution of the financial wage premium. Unpublished translation of “Ampleur et évolution dela prime salariale financière”, Regards croisés sur l'économie, 2020, 27(2): 97-109," SciencePo Working papers Main hal-03363171, HAL.
    9. Ewa Karwowski & Mimoza Shabani & Engelbert Stockhammer, 2016. "Financialisation: Dimensions and determinants. A cross-country study," Working Papers PKWP1619, Post Keynesian Economics Society (PKES).
    10. Bezemer, Dirk & Samarina, Anna, 2016. "Debt Shift, Financial Development and Income Inequality in Europe," Research Report 16020-GEM, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    11. Hope, David & Martelli, Angelo, 2019. "The transition to the knowledge economy, labor market institutions, and income inequality in advanced democracies," LSE Research Online Documents on Economics 100382, London School of Economics and Political Science, LSE Library.
    12. Szymborska Hanna K., 2016. "Financial Sector Transformation and Income Inequality-An Empirical Analysis," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 12(2), pages 36-48.
    13. Jabłoński Łukasz, 2019. "Inequality in Economics: The Concept, Perception, Types, and Driving Forces," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 27(1), pages 17-43, March.
    14. Hsieh, Joyce & Chen, Ting-Cih & Lin, Shu-Chin, 2019. "Financial structure, bank competition and income inequality," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 450-466.
    15. João Alcobia & Ricardo Barradas, 2023. "Functional Income Distribution And Secular Stagnation In Europe: An Analysis Of The Post-Keynesian Growth Drivers," Working Papers REM 2023/0283, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

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