Market power and income disparities: How can firms influence the gap between capital and labor earnings-Reference-Cited by-同舟云学术

Market power and income disparities: How can firms influence the gap between capital and labor earnings

Published:2024-05-16 Issue:3 Volume:76 Page:861-888
ISSN:0307-3378
Container-title:Bulletin of Economic Research
language:en
Short-container-title:Bulletin of Econ Res

Author:

Amountzias Chrysovalantis¹²^ORCID

Affiliation:

1. Department of Accounting, Finance and Economics University of Hertfordshire, Hertfordshire Business School Hertfordshire UK

2. Hertfordshire Business School De Havilland Campus Hertfordshire UK

Abstract

AbstractThis paper investigates the effects of market power on income disparities when firm‐specific parameters are considered to test how they shape the gap between capital and labor earnings through their pricing decisions. The dataset consists of 2895 UK manufacturing and services firms over 2010–2019. The results provide the following insights: (a) There is a strong positive association between market power and income disparities across the market, (b) liquidity constraints exert a positive effect on the asset‐based disparities ratio, but a negative effect on the profit‐based ratio. The robustness of the results is also checked when market‐specific characteristics are included in the process.

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/boer.12450

Reference100 articles.

1. Identification Properties of Recent Production Function Estimators

2. Liquidity Constraints and Imperfect Information in Subprime Lending

3. Market power and fiscal policy in OECD countries

4. Symmetrically Normalized Instrumental-Variable Estimation Using Panel Data

5. Financialization, non-financial corporations and income inequality: the case of France