The impact of labour market institutions on income inequality: evidence from OECD countries

Fortuna, Natércia; Neto, António

doi:10.1080/13504851.2020.1803474

Cited by 13 publications

(2 citation statements)

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“…Although testing candidate explanations of the changes observed in the shape of the earnings distribution and returns to education in Portugal over the period 1987-2017 is beyond the scope of this study, another possible explanation relates to changes in labour market institutions (LMI), such as the minimum wage, collective wage bargaining regimes or employment protection legislation (EPL), albeit previous literature has reached no definite conclusions on the sign of these different contributions, see e.g. Checci and García-Peñalosa (2010) and Fortuna and Neto (2020).…”

Section: Endowmentsmentioning

confidence: 90%

“…Notwithstanding some recent changes, there is in Portugal an established gap in EPL between permanent and temporary contracts, e.g. quite lower severance pay for the latter, resulting in a segmented labour market that may promote wage inequality, Fortuna and Neto (2020). For instance, Silva (2016) studied the effect of the 2004 reform, corresponding to the extension of the maximum legal duration of temporary contracts, on the distribution of the within-firm wage gap between permanent and temporary workers and found evidence of an increase in this gap at the median and at percentile 75.…”

Section: Endowmentsmentioning

confidence: 99%

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Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

et al. 2021

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This paper examines human capital inequality and how it relates to earnings inequality in Portugal using data from Quadros de Pessoal for the period 1986–2017. The objective is threefold: (i) show how the distribution of human capital has evolved over time; (ii) investigate the association between human capital inequality and earnings inequality; and (iii) analyse the role of returns to schooling, together with human capital inequality, in the explanation of earnings inequality. Our findings suggest that human capital inequality, computed based on the distribution of average years of schooling of employees working in the Portuguese private labour market, records a positive trend until 2007 and decreases from this year onwards, suggesting the existence of a Kuznets curve of education relating educational attainment levels and education inequality. Based on the decomposition of a Generalized Entropy index (Theil N) for earnings inequality, we observe that inequality in the distribution of human capital plays an important role in the explanation of earnings inequality, although this role has become less important over the last decade. Using Mincerian earnings regressions to estimate the returns to schooling together with the Blinder-Oaxaca decomposition of real hourly earnings we confirm that there are two important forces associated with the observed decrease in earnings inequality: a reduction in education inequality and compressed returns to schooling, mainly in tertiary education.

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Section: Endowmentsmentioning

confidence: 90%

Section: Endowmentsmentioning

confidence: 99%

Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

et al. 2021

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Unionization and income inequality in Canada

Brown

Das

2022

Applied Economics Letters

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Zero Poverty Society

Marchal,

Marx

2024

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This book is about preventing poverty. The notion that every person living amidst the relative affluence of the rich world has a right to a minimum income enabling social participation, be it frugally and soberly, holds as a fundamental matter of social justice to most people. But how can we make sure that every person has a decent minimum income allowing for a life in dignity in societies rich enough to afford such a right? How can we ensure that minimum income support is cost-effective and compatible with other goals such as promoting work effort, self-reliance, and upward mobility? How can political support for such schemes be fostered and made robust? This book assesses the current state of minimum income protection in the rich world, building on original empirical analysis and thorough literature reviews. What are best practices to learn from? It also engages with debates on topics as diverse as optimal targeting and means-testing, administrative complexity, non-take-up, behavioural economics, the political economy of minimum income protection, and basic income. Sarah Marchal and Ive Marx conclude that more adequate poverty prevention is possible, without the costs having to be prohibitive. However, they are sceptical about ‘silver-bullet’ solutions such as basic income. Adequate minimum income protection is not a matter of getting one scheme or policy right. It is a matter of getting multiple policy levers right, in the right configuration. Incremental, context-conscious expansion is the way forward if we really care about the most vulnerable.

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The impact of labour market institutions on income inequality: evidence from OECD countries

Cited by 13 publications

References 14 publications

Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

Unionization and income inequality in Canada

Zero Poverty Society

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