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Is There a Social Kuznets Curve? The Influence of Labour Standards on Inequality

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  • Remi Bazillier
  • Nicolas Sirven

Abstract

This study empirically investigates the impact of core labour standards on income inequality for a range of 90 countries from 1990-2000. A synthetic index of labour standards is computed by means of a Multiple Correspondence Analysis and no significant correlation is found with the Gini index. One of the reasons pointed out is that the effective implementation of core labour standards depends on the quality of the country's political and legal systems. Using instrumental variables in a TSLS model, we found an inverse 'U' shaped curve between the new endogenous index of core labour standards and income inequality.

Suggested Citation

  • Remi Bazillier & Nicolas Sirven, 2008. "Is There a Social Kuznets Curve? The Influence of Labour Standards on Inequality," Journal of Development Studies, Taylor & Francis Journals, vol. 44(7), pages 913-934.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:7:p:913-934
    DOI: 10.1080/00220380802150714
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    1. Camargo, José Márcio & Scheinkman, José A. & Werneck, Rogério L.F. & De Barros, Ricardo Paes & Ranis, Gustav & Velasco, Andrés & Bourguignon, François & Thorp, Rosemary & Figueroa, Adolfo & Lustig, No, 1994. "En Route to Modern Growth: Latin America in the 1990s: Essays in Honor of Carlos Díaz-Alejandro," IDB Publications (Books), Inter-American Development Bank, number 451, November.
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    4. José Márcio Camargo & José A. Scheinkman & Rogério L.F. Werneck & Ricardo Paes de Barros & Gustav Ranis & Andrés Velasco & François Bourguignon & Rosemary Thorp & Adolfo Figueroa & Nora Lustig & Mario, 1994. "En Route to Modern Growth: Latin America in the 1990s: Essays in Honor of Carlos Díaz-Alejandro," IDB Publications (Books), Inter-American Development Bank, number 80098 edited by Gustav Ranis, February.
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    10. Kanbur, Ravi & Chau, Nancy H, 2001. "The Adoption of Labour Standards Conventions: Who, When and Why?," CEPR Discussion Papers 2904, C.E.P.R. Discussion Papers.
    11. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
    12. César Calderón & Alberto Chong & Rodrigo O. Valdés, 2005. "Labor Market Regulations and Income Inequality: Evidence for a Panel of Countries," Central Banking, Analysis, and Economic Policies Book Series,in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 7, pages 221-279 Central Bank of Chile.
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