Development and the Labor Share

Maarek, Paul; Orgiazzi, Elsa

doi:10.1093/wber/lhy001

Cited by 9 publications

(5 citation statements)

References 37 publications

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“…Because the organised manufacturing/industrial sectors are crucial for economic growth, especially in developing countries, this measure of inequality represents the competitiveness‐distribution nexus in the key terrain for negotiations between employers and employees. For this reason, several relevant studies focus on this inequality proxy (e.g., Maarek & Orgiazzi, 2020; Onaran, 2009).…”

Section: The Political Economy Of Employment Relations In Iran and Th...mentioning

confidence: 99%

Financialisation, globalisation, and the industrial labour share: A comparison between Iran and Thailand

Gouzoulis

2021

Industrial Relations Journal

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This paper examines Iran and Thailand and shows that the distributional consequences of financialisation and globalisation do not depend exclusively on the extent of financial deepening and exposure to globalisation.Instead, the cultural and legal underpinnings of the creditor-debtor relationship and the form of global integration matter more. | INTRODUCTIONDespite the employment contract is the cornerstone of the employment relationship, the broader economic and social conditions are also key components of the employer-employee relations (Kahn-Freund, 1954). During the last several decades, two fundamental macro-level socio-economic shifts relevant to employment relations have occurred (Blyton et al., 2010, p. 5): first, financialisation, that is, the increased influence of financial institutions on the behaviour and priorities of non-financial firms and individuals and second, trade liberalisation and the globalisation of production. Consequently, a growing body of work within industrial relations and political economy looks at how these structural shifts have altered corporate governance structures and the employment relationship (e.g.

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Section: The Political Economy Of Employment Relations In Iran and Th...mentioning

confidence: 99%

Financialisation, globalisation, and the industrial labour share: A comparison between Iran and Thailand

Gouzoulis

2021

Industrial Relations Journal

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“…12 To undertake an analysis for the 1990-2015 period, we take the relative productivity of non-tradables as a whole as a proxy for the relative productivity of the wage-employment sector in non-tradables (the relevant variable in the model of Annex B) and the wage share in non-tradables as a proxy for the adjusted wage share of this sector (the relevant variable in the model). 13 See Sommer (2009) and Maarek and Orgiazzi (2015) for empirical evidence on the influence of an economy's dual structure on the evolution of the wage share across different country and industry samples. For a general presentation of dual-economy models in the tradition of classical development theory, see Ros (2013, Part II).…”

Section: Manufacturing Industriesmentioning

confidence: 99%

The decline of the labour share in Mexico, 1990-2015

Ibarra¹,

Ros²

2017

WIDER Working Paper

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This paper studies the decline of the labour share in Mexico during the period 1990-2015. It calculates the wage share and alternative measures of the labour income share (which includes labour income of the self-employed) for the whole economy, the private business sector, and its major economic sectors. It carries out a shift-share analysis showing that the decline in the labour share is mostly explained by reductions within the economy's major sectors (including within manufacturing, tradables, and non-tradables) rather than by a recomposition of value added towards those with low labour shares. It distinguishes within each major area of economic activity a modern wage-employment sector and an informal self-employment one. In contrast to agriculture-where the labour share fell due a shift of labour force towards the wage-employment sector-in other major areas of the economy the fall in the labour share is explained by reductions within the wage-employment sector. Econometric estimations indicate that parallel declines in the wage share and relative productivity of non-tradables and in the US manufacturing labour share all played a large role in the reduction of the manufacturing wage share in Mexico. More generally, the analysis suggests that the lagging productivity of the informal non-tradable sector of the economy-itself a reflection of the country's low aggregate rate of economic growth-is a crucial factor in the fall of the labour share in the formal sectors. The paper concludes by discussing possible explanations for the paradox of the slow rate of economic growth in Mexico despite the rise in the profit share, and by pointing out remaining challenges for reconciling the different sources of data in the calculation of the labour share in Mexico.

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“…Moreover, the effect would be greater in developing countries since informal economic activities are rife in most sectors of their economies. Indeed, this causes lower official levels of the labour force, unemployment and wages (Maarek & Orgiazzi, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Own-account workers are mainly in the "low-wage" sector and do not have full access to jobs in the "high-wage" sector (what segmentation theories call the "second sector"). This could partly explain the existence of labour market barriers and why poverty is prevalent (Lee & Parasnis, 2014;Maarek & Orgiazzi, 2020).…”

Section: How Does the Labour Force Affect The Income Level Of The Wor...mentioning

confidence: 99%

Working Poverty and Quality of Employment: The Great Refugee Crisis in Middle Eastern Host Countries

Alwrekiat

Mihi-Ramírez

Ferrer

2023

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This paper focuses on the distribution of the working poor by income level across countries and examines how indicators such as the level of unemployment, the labour force, and the number of self-employed, impact that distribution. In addition, it also examines the impact of official development assistance and the massive influx of refugees as a result of the Syrian conflict. Four income levels of the working poor are analysed using the panel data technique. The sample includes the 5 main host countries (Egypt, Iraq, Jordan, Lebanon, and Turkey) for the period from 1991 to 2021. Our results confirm that unemployment is not a significant predictor for developing countries, so we recommend indicators of job quality. Moreover, our results confirm a low impact of refugees on the labour market in host countries. Furthermore, the effect of self-employment on the income level of the working poor is positive but limited.

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Development and the Labor Share

Cited by 9 publications

References 37 publications

Financialisation, globalisation, and the industrial labour share: A comparison between Iran and Thailand

Financialisation, globalisation, and the industrial labour share: A comparison between Iran and Thailand

The decline of the labour share in Mexico, 1990-2015

Working Poverty and Quality of Employment: The Great Refugee Crisis in Middle Eastern Host Countries

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