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Union power and inequality

Jaumotte,  Florence,  Osorio Buitron, Carolina, (2015), “Union power and inequality”, VoxEU, 22 Οκτωβρίου

Inequality in advanced economies has risen considerably since the 1980s, largely driven by the increase of top earners’ income shares. This column revisits the drivers of inequality, emphasising the role played by changes in labour market institutions. It argues that the decline in union density has been strongly associated with the rise of top income inequality and discusses the multiple channels through which unionisation matters for income distribution.

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