Labor-Market Volatility and Financial Development in the Advanced OECD Countries: Does Labor-Market Regulation Matter?

Darcillon, Thibault

doi:10.1057/ces.2016.2

Cited by 10 publications

(9 citation statements)

References 23 publications

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“…Related macro and micro level evidence regarding the negative impact of corporate financialization on skilled and unskilled labour across varieties of capitalism and different types of non-financial firms is offered by various empirical studies (Clark and Macey 2015;Darcillon 2016;Gospel and Pendleton 2003;Palpacuer et al 2011). Also, corporate financialization in the form of private equity and new investment funds often leads to broader 'breaches of trust' between different types of stakeholders, including employers and employees/trade unions, but without these necessarily leading to worsening workplace conditions (Appelbaum et al 2013;Appelbaum and Batt 2014).…”

Section: Financialization As a Driver Of Atypical Employmentmentioning

confidence: 99%

Financialization and the rise of atypical work

Gouzoulis

Iliopoulos

Galanis

2022

Brit J Industrial Rel

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The current literature on financialization and the labour process focuses disproportionately on how corporate financialization induces the use of atypical work and largely overlooks the role of household financializa-This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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Section: Financialization As a Driver Of Atypical Employmentmentioning

confidence: 99%

Financialization and the rise of atypical work

Gouzoulis

Iliopoulos

Galanis

2022

Brit J Industrial Rel

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“…Evidence suggests that labour market institutions can soften the effect of financial development on wage volatility. Using regression methods covering 15 OECD countries from 1974to 2007, Darcillon (2016 assesses the links between financial development (stock market capitalisation/GDP and the employment share of the financial sector) and wage volatility. A higher employment share of finance is strongly associated with increased labour market volatility (both hours worked and wages).…”

Section: Wage Volatilitymentioning

confidence: 99%

How does finance influence labour market outcomes? A review of empirical studies

Heil

2020

JES

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PurposeThis paper reviews economic studies on the effects of various aspects of finance on labour market outcomes.Design/methodology/approachThe paper is a systematic literature review that reviews the weight of the evidence on the relationships between specific elements of finance and labour outcomes. The review is divided into three major sections: (1) job quantity and job quality; (2) distributional effects; and (3) resilience and adaptability.FindingsFinance interacts with labour market institutions to jointly determine labour outcomes. Firm financial structures influence their labour practices – highly leveraged firms show greater employment volatility during cyclical fluctuations, and leverage strengthens firm bargaining power in labour negotiations. Bank deregulation has mixed impacts on labour depending upon the state of prior bank regulations and labour markets. Leveraged buyouts tend to dampen acquired-firm job growth as they pursue labour productivity gains. The shareholder value movement may contribute to short-termism among corporate managers, which can divert funds away from firm capital accumulation toward financial markets, and crowd out productive investment. Declining wage shares of national income in most OECD countries since 1990 may be driven in part by financial globalisation. The financial sector contributes to rising income concentration near the top of the distribution in developed countries. The availability of finance is associated with increased reallocation of labour, which may either enhance or impede productivity growth. Finally, rising interest rate environments and homeowners with mortgage balances that exceed their home's value may reduce labour mobility rates.Originality/valueThis review contributes to the understanding of the effects of finance on labour by reviewing and synthesising a large volume of literature.

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“…Increasing shareholder financialisation has negative effects on wage shares across OECD countries. Darcillon (2016) Panel regressions with fixed effects; threshold regressions to test for non-linear relationships.…”

Section: Wage Sharesmentioning

confidence: 99%

“…Recent evidence suggests that labour market institutions can soften the effect of financial development on wage volatility. Using regression methods and covering 15 OECD countries from 1974 to 2007, Darcillon (2016) assesses the links between financial development (stock market capitalisation/GDP and the employment share of the financial sector) and wage volatility. A higher employment share of finance is strongly associated with increased labour market volatility (both hours worked and wages).…”

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confidence: 99%

How does finance influence labour market outcomes?

Heil¹

2018

OECD Economics Department Working Papers

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This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ ECO/WKP(2018)43 HOW DOES FINANCE INFLUENCE LABOUR MARKET OUTCOMES? A REVIEW OF EMPIRICAL STUDIES Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

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Labor-Market Volatility and Financial Development in the Advanced OECD Countries: Does Labor-Market Regulation Matter?

Cited by 10 publications

References 23 publications

Financialization and the rise of atypical work

Financialization and the rise of atypical work

How does finance influence labour market outcomes? A review of empirical studies

How does finance influence labour market outcomes?

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