Wage‐led versus profit‐led demand: a comprehensive empirical analysis

This study investigates various economic factors’ impact in determining the relationship between functional income distribution and aggregate demand from both a theoretical and an empirical viewpoint. We base our analysis on a demand‐driven growth model for an open economy that allows for either profit‐led or wage‐led regimes. Our results strongly indicate that a higher level of trade openness is associated with a lower probability of being wage‐led. We find evidence that lower wage inequality makes an economy more wage‐led and that countries with a greater private credit‐to‐gross domestic product (GDP) ratio are more likely to be profit‐led

Globalization, wage shares and income distribution in Turkey

Globalization is often observed to result in greater labour flexibility and decreased labour bargaining power; thus, imposing a downward pressure on wages, especially in the sectors producing tradable goods. This would result then in a deterioration of the wage share and rising inequality within developing countries. In 1980s, Turkey implemented liberalization policies to promote globalization of the Turkish economy by raising trade and capital flows. Using a sectoral panel data, this paper shows that low-wage competition followed by trade liberalization reduced the wage shares in the manufacturing industry. The analysis also exhibits that the financial liberalization and rising capital flows hurt workers by increasing macroeconomic volatility, leading to financial crises that affected the functional income inequality. Copyright 2010, Oxford University Press.

Data for: Ethnic Fractionalization, Conflict and Educational Development in Turkey

All the data in this analysis (and the more that we ended up not using) is combined from publicly available resources and we will gladly share the data for all interested researchers as an excel file through IJED or corresponding author’s own website

Data for: Ethnic Fractionalization, Conflict and Educational Development in Turkey

All the data in this analysis (and the more that we ended up not using) is combined from publicly available resources and we will gladly share the data for all interested researchers as an excel file through IJED or corresponding author’s own website.THIS DATASET IS ARCHIVED AT DANS/EASY, BUT NOT ACCESSIBLE HERE. TO VIEW A LIST OF FILES AND ACCESS THE FILES IN THIS DATASET CLICK ON THE DOI-LINK ABOV