The Effect of Labor's Bargaining Power on Wealth Inequality in the UK, USA, And France

TY - JOUR

T1 - The Effect of Labor's Bargaining Power on Wealth Inequality in the UK, USA, And France

AU - Tippet, Benjamin

AU - Onaran, Ozlem

AU - Wildauer, Rafael

PY - 2022/12/13

Y1 - 2022/12/13

N2 - This paper analyses the determinants of wealth inequality, measured as the share of wealth owned by the top 1 percent wealthiest individuals. We find that labor's bargaining power is a significant and important determinant of top wealth shares. Using a semi-structural vector autoregression (SVAR) model for the period 1970–2019, we estimate that shocks to labor's bargaining power explain 32 percent, 8 percent and 32 percent of the variation around the long-term trend in wealth inequality in the UK, USA and France, respectively.

AB - This paper analyses the determinants of wealth inequality, measured as the share of wealth owned by the top 1 percent wealthiest individuals. We find that labor's bargaining power is a significant and important determinant of top wealth shares. Using a semi-structural vector autoregression (SVAR) model for the period 1970–2019, we estimate that shocks to labor's bargaining power explain 32 percent, 8 percent and 32 percent of the variation around the long-term trend in wealth inequality in the UK, USA and France, respectively.

U2 - 10.1111/roiw.12626

DO - 10.1111/roiw.12626

M3 - Article

SN - 0034-6586

VL - 70

JO - REVIEW OF INCOME AND WEALTH

JF - REVIEW OF INCOME AND WEALTH

IS - 1

ER -