TY - JOUR
AU1 - Köhler, Karsten
AU2 - Guschanski, Alexander
AU3 - Stockhammer, Engelbert
AB - It is frequently asserted that financialization has contributed to the decline in the wage share. This article provides a theoretical clarification and a systematic empirical investigation. We identify four arguments for why financialization would affect the wage share: (a) a Political Economy approach focusing on the exit options of firms; (b) a mark-up pricing approach stressing the role of financial overhead costs for firms; (c) increased competition on capital markets and shareholder value orientation; and (d) the role of household debt in increasing workers’ financial vulnerability and undermining their class consciousness. The article compiles a comprehensive set of empirical measures of financialization and uses it to test these hypotheses with a panel regression of 14 OECD countries over the 1989–2011 period. We find strong evidence for negative effects of household debt and evidence for negative effects of financial deregulation on the wage share.
TI - RETRACTED: How does financialization affect functional income distribution? A theoretical clarification and empirical assessment
JF - Socio-Economic Review
DO - 10.1093/ser/mww009
DA - 2016-10-01
UR - https://www.deepdyve.com/lp/oxford-university-press/retracted-how-does-financialization-affect-functional-income-SwJTMtsfWc
SP - 449
EP - 474
VL - 22
IS - 1
DP - DeepDyve
ER -