abstract: 'This study analyzes the long-term effect of labor market institutions,

  such as minimum wage and union density, on inequality, investment,

  growth, and consumption, by using data of the member countries of the

  Organization for Economic Cooperation and Development since the 1970s.

  Labor market institution variables are used to test arguments on

  wage-led growth theory.

  Panel cointegration approach was used to investigate the long-term

  effect of these variables. Results of panel cointegration test show that

  variables of labor market institutions are not robustly correlated to

  macroeconomic outcomes in the long run. This condition is not in

  accordance with the findings of the proponents and critics of wage-led

  growth. No robust evidence exists to show that increasing minimum wage

  and union density, which are representative policies for wage-led

  growth, are correlated to inequality, labor income share, consumption,

  investment, or growth in the long run. Estimation results of this study

  suggest that the empirical basis of support and criticism for wage-led

  growth theory is weak.'
affiliation: 'Shin, H (Corresponding Author), Seoul Natl Univ, Ctr Distribut Justice,
  Seoul, South Korea.

  Shin, Hochul, Seoul Natl Univ, Ctr Distribut Justice, Seoul, South Korea.'
author: Shin, Hochul
author-email: s2h3c7@gmail.com
author_list:
- family: Shin
  given: Hochul
da: '2023-09-28'
files: []
issn: 1225-0279
journal: SEOUL JOURNAL OF ECONOMICS
keywords: Wage-led growth; Minimum wage; Union density; Panel cointegration
keywords-plus: 'NATIONAL MINIMUM-WAGE; INCOME INEQUALITY; STOCK MARKETS; IMPACT;

  FINANCIALISATION; EMPLOYMENT; TESTS; RISE; PRODUCTIVITY; INVESTMENT'
language: English
number: '2'
number-of-cited-references: '68'
pages: 225-256
papis_id: b5f05c67188924bfe6aaa1f4f5bcfc89
ref: Shin2019labormarket
times-cited: '1'
title: 'Labor Market Institutions and Wage-led Growth: A Panel Cointegration Approach'
type: Article
unique-id: WOS:000469805500004
usage-count-last-180-days: '0'
usage-count-since-2013: '5'
volume: '32'
web-of-science-categories: Economics
year: '2019'