Globalisation, technological progress and changes in regulations and institutions: which impact on the rise of earnings inequality in OECD countries?

"This paper examines the distributive impact of economic globalisation, technological progress and changes in labour market policies, regulations and institutions in OECD countries over the past quarter century, up to the Great Recession. It identifies the relevant pathways between macro-econom...

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Main Authors: Chen, Wen Hao, Förster, Michael F., Llena-Nozal, Ana
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Luxembourg 2013
LIS
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19123925124919411079-Globalisation,-technological-p.htm
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author Chen, Wen Hao
Förster, Michael F.
Llena-Nozal, Ana
author_facet Chen, Wen Hao
Förster, Michael F.
Llena-Nozal, Ana
collection Library items
description "This paper examines the distributive impact of economic globalisation, technological progress and changes in labour market policies, regulations and institutions in OECD countries over the past quarter century, up to the Great Recession. It identifies the relevant pathways between macro-economic developments and earnings inequality among the whole working-age population by accounting for both changes in wage dispersion among workers and changes in earnings gaps between the employed and non-employed. The results suggest that technological progress is a key driver behind the upward trend of earnings inequality; it transmitted inequality mainly through raising wage dispersion. Economic globalisation, in terms of both rapidly rising trade and financial integration, appears overall distributional neutral once other factors, in particular changes in policies and institutions, are also controlled for. Regulatory reforms that aimed at promoting growth and productivity appeared to exert contrasting effects: they tended to close the gap between employed and non-employed, by increasing job opportunities but at the same time also contributed to greater wage inequality. Finally, the growth in the supply of skilled workers is an important equalizing factor contributing not only to reduce wage dispersion among workers but also to higher employment rates. Up-skilling provided a sizable counterweight to the increase in earnings inequality resulting from technological progress, pressure from globalisation and institutional changes."
format TEXT
geographic OECD countries
id 19123925124919411079_c4a7757db7894e189b6614282f8f9c8e
institution ETUI-European Trade Union Institute
is_hierarchy_id 19123925124919411079_c4a7757db7894e189b6614282f8f9c8e
is_hierarchy_title Globalisation, technological progress and changes in regulations and institutions: which impact on the rise of earnings inequality in OECD countries?
language English
physical 95 p.
Digital
publishDate 2013
publisher Luxembourg
LIS
spellingShingle Chen, Wen Hao
Förster, Michael F.
Llena-Nozal, Ana
employment opportunity
labour market
technological change
wages
social inequality
Globalisation, technological progress and changes in regulations and institutions: which impact on the rise of earnings inequality in OECD countries?
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=100900292818
title Globalisation, technological progress and changes in regulations and institutions: which impact on the rise of earnings inequality in OECD countries?
topic employment opportunity
labour market
technological change
wages
social inequality
url https://www.labourline.org/KENTIKA-19123925124919411079-Globalisation,-technological-p.htm