Unions and Income Inequality: A Heterogeneous Panel Co‐integration and Causality Analysis

Herzer, Dierk

doi:10.1111/labr.12075

Cited by 22 publications

(13 citation statements)

References 91 publications

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“…In Korea, it is more fragmented and divided due to neoliberalisational reform after an International Monetary Fund economic crisis 14. Korea also has a lower labour union density and a lower collective agreement coverage rate 15 16. Evident from our results, a proportion of working population’s employment is set on a daily contract basis.…”

Section: Discussionmentioning

confidence: 57%

Influence of combined exposure to perceived risk at work and unstable employment on self-rated health: a comparison of two cross-sectional surveys in Europe and Korea

2020

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ObjectivesThe purpose of this study was to investigate the combined effect of exposure to perceived risk at work and unstable employment on self-rated health in both Korea and the European Union.DesignCross-sectional study.SettingWe conducted the analyses using employees data from the third Korean Working Conditions Survey (KWCS) conducted in 2011 and the fifth European Working Conditions Survey (EWCS) conducted in 2010.ParticipantsEmployees of the third KWCS and the fifth EWCS from 35 European countries were the participants of the study.Primary outcome measuresEmployment status was divided into two categories: stable and unstable employment. Perceived risk regarding safety and health at work were assessed. Primary health outcomes were poor or moderate self-rated health. Exposures and health status were assessed via a questionnaire.ResultsAmong Korean employees, the OR of poor self-rated health was 2.00 (95% CI: 1.80 to 2.22) for those with perceived risk at work, 1.18 (95% CI: 1.09 to 1.28) for those with unstable employment and 3.22 (95% CI: 2.72 to 3.81) for those with both perceived risk at work and unstable employment. Relative excess risk due to interaction (RERI) was 1.03 (95% CI: 0.48 to 1.58). Among European employees, the OR for poor self-rated health was 3.20 (95% CI: 2.93 to 3.49) for those with perceived risk at work, 1.04 (95% CI: 0.97 to 1.13) for those with unstable employment and 3.41 (95% CI: 2.93 to 3.98) for those with both perceived risk at work and unstable employment. The RERI was 0.18 (95% CI: −0.36 to 0.71).ConclusionsAmong Korean employees, a supra-additive interaction between perceived risk at work and unstable employment on poor self-rated health was observed. Conversely, a supra-additive interaction was not observed among European employees.

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Section: Discussionmentioning

confidence: 57%

Influence of combined exposure to perceived risk at work and unstable employment on self-rated health: a comparison of two cross-sectional surveys in Europe and Korea

2020

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“…In Figure , we test the sensitivity of our results to particular observations by sequentially excluding one region at a time from the sample as in Herzer (). Panel A shows the resulting estimated effects on the employment of natives and the associated t ‐statistics.…”

Section: Resultsmentioning

confidence: 99%

Impact of cultural diversity on local labor markets. Evidence from Greece's “age of mass migration”

Roupakias

Dimou

2019

The Manchester School

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This paper analyzes how the interaction of ethnicities and cultures impacts on productivity and employment on Greek local labor markets, within the 20‐year interval between 1991 and 2011. We compute two alternative proxies for cultural diversity, namely the fractionalization and the polarization index, using information on 118 countries of origin. We also account for the potential endogenous allocation of individuals across local labor markets by employing a “shift‐share” instrument, exploiting the fact that networks play an important role in the settlement patterns of recent migrants. Our identification strategy indicates that the contribution of diversity in terms of birthplace is positive, at least up to a certain point. This finding appears to be robust and not driven by the inclusion of further controls, outliers, spatial autocorrelation, and selection on unobservables. Interestingly, we find that ethnic heterogeneity helps employment and productivity by promoting sectoral diversity.

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“…A common view in the Nordic countries is that higher unionization rates and coordinated wage-setting reduce wage inequality; see Barth and Moene (2013). Empirical evidence also suggests that a higher level of unionization reduces income inequality in countries like the US and the UK; see Card et al (2004) and Herzer (2016). In particular, Aidt and Tzannatos (2002) find that higher union density depresses the wage differentials between high-and low-skilled workers.…”

Section: Deunionization and Polarizationmentioning

confidence: 99%

Deunionization and job polarization – a macroeconomic model analysis for a small open economy

Brasch

Gjelsvik²,

Sparrman

2018

Economic Systems Research

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Declining unionization rates and job polarization are two important labor market developments of recent decades. A large body of literature has analysed these phenomena separately, but little has been done to see whether there is a link between them. We employ a macroeconomic model for a small open economy with a large input-output core to analyse how deunionization may cause job polarization. Our analysis shows that medium-skilled workers are negatively affected by deunionization, mainly as a result of the heterogeneity of the elasticities of substitution between different types of labor. While the elasticities of substitution between highand medium-skilled labor are relatively low, the elasticities of substitution between medium-and low-skilled are relatively high. As a result, when deunionization leads to increased wage dispersion, we find that demand for low-skilled increases at the expense of medium-skilled labor, thus yielding a more polarised labor market. We would like to thank Pål Boug, Ådne Cappelen, Håvard Hungnes and Ingrid Bjartveit Krüger for inspiration and discussions, to Roger Hammersland for technical support in designing an automatic procedure for estimating the system of cost share equations and to Jørgen Ouren for carrying out the calculations. We also benefited from discussions during a presentation at

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Unions and Income Inequality: A Heterogeneous Panel Co‐integration and Causality Analysis

Cited by 22 publications

References 91 publications

Influence of combined exposure to perceived risk at work and unstable employment on self-rated health: a comparison of two cross-sectional surveys in Europe and Korea

Influence of combined exposure to perceived risk at work and unstable employment on self-rated health: a comparison of two cross-sectional surveys in Europe and Korea

Impact of cultural diversity on local labor markets. Evidence from Greece's “age of mass migration”

Deunionization and job polarization – a macroeconomic model analysis for a small open economy

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