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The effect of labour's bargaining power on wealth inequality in the UK, the USA, and France

The effect of labour's bargaining power on wealth inequality in the UK, the USA, and France

Tippet, Benjamin ORCID: 0000-0003-4704-5735, Onaran, Özlem ORCID: 0000-0002-6345-9922 and Wildauer, Rafael ORCID: 0000-0001-6395-6286 (2022) The effect of labour's bargaining power on wealth inequality in the UK, the USA, and France. The Review of Income and Wealth. ISSN 0034-6586 (Print), 1475-4991 (Online) (In Press)

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Abstract

This paper analyses the determinants of wealth inequality, measured as the share of wealth owned by the top 1% wealthiest individuals. We find that labour’s bargaining power is a significant and important determinant of top wealth shares. Using a semi-structural vector autoregression (SVAR) model for the period 1970-2019, we estimate that shocks to labour’s bargaining power explain 32%, 8% and 32% of the variation around the long-term trend in wealth inequality in the UK, USA and France, respectively.

Item Type: Article
Uncontrolled Keywords: wealth inequality; income inequality; labour’s bargaining power; technological change; globalisation
Subjects: H Social Sciences > HC Economic History and Conditions
J Political Science > JK Political institutions (United States)
J Political Science > JN Political institutions (Europe)
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of Accounting & Finance
Faculty of Business > Department of International Business & Economics
Last Modified: 19 Oct 2022 15:45
URI: http://gala.gre.ac.uk/id/eprint/37803

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