The impact of labour market institutions on income inequality: evidence from OECD countries

• Type: Article in International Scientific Journal
• Date: 2021-07

Authors

Natércia Fortuna (Author) FEP; António Neto (Author) Other

Journal

Title: Applied Economics Letters

Vol. 28 No. 3

Pages: 1110-1113

ISSN: 1350-4851

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 2 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00S-K84

DOI: 10.1080/13504851.2020.1803474

Abstract (EN): Using data from 35 OECD countries for the 1993-2017 period, this paper shows that stronger Labour Market Institutions (LMI), such as trade unions and bargaining coverage, contribute to a decrease in income inequality measured by the Gini coefficient. Additionally, there seems to be a positive interaction effect between unions and bargaining coverage. The marginal impact of trade unions (bargaining coverage) is enhanced by the presence of high levels of bargaining coverage (trade unions). Notwithstanding, this impact seems to be higher for bargaining coverage. On average, an increase in unions' density (bargaining coverage) by 1% leads to an estimated decrease in inequality by 0.30% (0.35%),ceteris paribus.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 4