Deunionization still leaves much wage inequality unexplained, pointing to financialization

Evidence

Western and Rosenfeld ð2011Þ estimate that deunionization accounts for one- fifth to one-third of the growth of U.S. wage inequality between 1973 and 2007. While this political-institutional turn reveals the importance of social practices in shaping income dynamics, limited attention has been paid to financialization. If there is one unexamined institutional innovation that is critical to the rise in income inequality, we suspect that it is the financial innovations adopted by the U.S. corporations since the late 1970s. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 34

Categorization

• XREF: Western and Rosenfeld’s estimate and the labor-institution literature on unions connect to the reader’s institutional/base material on labor share and deunionization. — connects to: Financialization drives earnings inequality nearly as much as declining unionization — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 164; Financialization theory links wage-compromise collapse and shareholder value to inequality — Natascha van der Zwan, Making Sense of Financialization, 109; Inequality dimensions reflect one institutional shift toward financialization — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 25 (+3 more)

Related

• Financialization drives earnings inequality nearly as much as declining unionization (similarity 0.91)
• Inequality dimensions reflect one institutional shift toward financialization (similarity 0.89)
• Financialization caused most of the decline in labor’s income share since 1970 (similarity 0.88)
• Financialization independently explains over half of labor’s falling income share since 1970. (similarity 0.86)
• Financialization raises earnings inequality across most US industries (similarity 0.86)
• Financialization may be a root cause behind union decline and offshoring (similarity 0.86)
• Financialization caused roughly three-quarters of the labor share decline by 1997. (similarity 0.84)
• Financialization channels income toward the wealthy and depresses productive investment and wages. (similarity 0.84)
• Unionization decreases income inequality by disciplining employer power (similarity 0.84)
• Financialization theory links wage-compromise collapse and shareholder value to inequality (similarity 0.83)
• Structural inequality has redistributed trillions from American workers to the richest (similarity 0.82)
• Prior research linked financialization to inequality mostly indirectly, not causally. (similarity 0.82)
• US inequality since 1970 grew mostly within rather than between industries (similarity 0.81)
• Declining industries show rising earnings inequality (similarity 0.81)
• Income inequality reflects relative bargaining power between actor groups, not markets (similarity 0.81)

Broader Connections

• Financialization drives earnings inequality nearly as much as declining unionization #corroborates (0.95) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 164
• Financialization raises earnings inequality across most US industries #corroborates (0.85) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 152
• Financialization theory links wage-compromise collapse and shareholder value to inequality #expands (0.80) — Natascha van der Zwan, Making Sense of Financialization, 109
• Financialization caused most of the decline in labor’s income share since 1970 #corroborates (0.80) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 158
• Inequality dimensions reflect one institutional shift toward financialization #qualifies (0.75) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 25