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Financialisation and Distribution Before and After the Crisis: Patterns for Six OECD Countries

  • Eckhard Hein
  • Petra Dünhaupt
  • Ayoze Alfageme
  • Marta Kulesza
Chapter
Part of the International Papers in Political Economy book series (IPPE)

Abstract

In this contribution, we analyse the effects of financialisation on income distribution, before and after the Great Financial Crisis and the Great Recession. The analysis is based on a Kaleckian theory of income distribution adapted to the conditions of financialisation. Financialisation may affect aggregate wage or gross profit shares of the economy as a whole through three channels: first, the sectoral composition of the economy; second, the financial overhead costs and profit claims of the rentiers; and, third, the bargaining power of workers and trade unions. We examine empirical indicators for each of these channels for six OECD (Organisation for Economic Co-operation and Development) economies, both before and after the crisis. We find that these countries have shown broad similarities regarding redistribution before the crisis, however, with differences in the underlying determinants. These differences have carried through to the period after the crisis and have led to different results regarding the development of distribution since then.

Keywords

Financialisation Distribution Financial and economic crisis Kaleckian theory of distribution 

JEL Code

D31 D33 D43 

Notes

Acknowledgement

We would like to thank Philip Arestis for helpful comments. Remaining errors are ours, of course.

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Eckhard Hein
    • 1
  • Petra Dünhaupt
    • 1
  • Ayoze Alfageme
    • 1
  • Marta Kulesza
    • 1
    • 2
  1. 1.Berlin School of Economics and LawBerlinGermany
  2. 2.University of Paris 13VilletaneuseFrance

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