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Association: Name: The Midwest Political Science Association URL: http://www.indiana.edu/~mpsa/
Citation: URL: http://www.allacademic.com/meta/p83015_index.html Direct Link: HTML Code:

Oliver, Rebecca. "The Legacy of Equality: Documenting and Understanding Changes in Wage Inequality in Advanced Industrial Democracies (1970-2002)." Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois, Apr 15, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p83015_index.html>

Oliver, R. J. , 2004-04-15 "The Legacy of Equality: Documenting and Understanding Changes in Wage Inequality in Advanced Industrial Democracies (1970-2002)." Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois <Not Available>. 2009-05-26 from http://www.allacademic.com/meta/p83015_index.html

Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: In many advanced industrial countries there has been a rise in the level of wage inequality in recent years. Despite this overall rise in the level of wage inequality, certain countries are rapidly moving towards a less equal distribution of wages, while others do not seem to be changing significantly. This paper examines wage inequality in 18 advanced industrial democracies using new data covering the 1980 to 2002 time-period (OECD 2002), (LIS 2001). Past work has shown that countries with centralized bargaining institutions[1] tend to have lower levels of inequality (Wallerstein 1999), (Pontusson, et al. 2002) and that countries known as social market economies[2] are less likely to undergo major increases in the level of wage inequality (Rueda and Pontusson 2000). This paper first evaluates whether or not these findings continue to hold for the 1995-2002 period. Secondly, the work introduces new variables that help us to better grasp why certain countries, including a few with centralized bargaining practices, have seen important increases in the level of wage inequality, while others have not. Drawing upon extensive field work in Italy and Sweden, we can see that the presence of wage indexation practices, wage scales, and the type of confederal groupage - the way in which union members are grouped into confederations, either by ideological/religious affiliation or by occupational-type [3] are critical factors in explaining whether or not a country will experience change in the distribution of wages. This paper aims to evaluate the significance of these three variables in a wider sample of countries through a pooled cross-section time-series analysis. There are two main ideas guiding this research: 1) In order to understand the sources of stability and change in the level of wage inequality in a given country, we need to look carefully at the institutions and practices that frame the ways in which debates about the distribution of wages occur (wage scales and wage indexation); 2) The composition of groups participating in these decisions have a critical impact on the nature of debates on distributional questions and therefore on the outcome of these debates, either towards more or less egalitarian outcomes. This work aims to increase our knowledge about the specific causal effects of existing institutions and structures on the level of wage inequality. This work adds a level of detail to existing analysis by disaggregating both social market economies and/or countries with a legacy of centralized bargaining into smaller sub-groups based on the presence or absence of critical institutional components. This disaggregation is important due to the fact that there are now a wide variety of paths taken by countries that had centralized bargaining in the past. [1] Bargaining institutions refer to the fundamental structures and procedures by which employers, labor unions and, occasionally, governments, negotiate wages and other conditions of employment. [2] Social market economies are defined by a comprehensive welfare state, government regulation to standardize employment conditions, and high degrees of collective bargaining. Countries included are: Austria, Germany, Finland, Denmark, Sweden, Norway, the Netherlands and Sweden.(Rueda and Pontusson 2000) [3] Occupational-type union confederations refer to blue- or white-collar or professional union confederations.

Reference Points and the Lines that Divide: Understanding Differing Developments in Inequality across Advanced Industrial Democracies

Which Institutions Matter?: Understanding Developments in Wage Inequality across Advanced Industrial Democracies (1980-2002)