Inequality and Labor Market Institutions

Author/Editor:

Florence Jaumotte ; Carolina Osorio

Publication Date:

July 1, 2015

Electronic Access:

Free Full Text (PDF file size is 1352 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The SDN examines the role of labor market institutions in the rise of income inequality in advanced economies, alongside other determinants. The evidence strongly indicates that de-unionization is associated with rising top earners’ income shares and less redistribution, while eroding minimum wages are related to increases in overall income inequality. The results, however, also suggest that a lack of representativeness of unions may be associated with higher inequality. These findings do not necessarily constitute a blanket recommendation for higher unionization and minimum wages, as country-specific circumstances and potential trade-offs with other policy objectives need to be considered. Addressing inequality also requires a multipronged approach, which should include taxation reform and curbing excesses associated with financial deregulation.

Series:

Staff Discussion Note No. 15/14

Subject:

English

Publication Date:

July 1, 2015

ISBN/ISSN:

9781513577258/

Stock No:

SDNEA201514

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

30

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