abstract: 'Since the beginning of the 1980s, reforms of the labour market have been

  at the centre of political and economic debate in the European Union.

  While these reforms were implemented mainly with the aim of improving

  employment performance by removing structural issues, they may also have

  had non-secondary and non-negligible effects on the share of national

  income received by workers. The aim of this paper is to study the

  effects of the changes in the labour market regulation index (LMRI) on

  the wage share in twelve Eurozone countries between 2000 and 2019. The

  empirical results - obtained from the estimation of an error correction

  model (ECM) - show that: (i) an inverse relation exists between LMRI as

  a whole and adjusted wage share in the short run only; (ii) the

  reduction of the adjusted wage share depends mainly on two specific

  measures of flexibility: a more decentralized level of bargaining (the

  effects of which are significant in both long- and short-run periods)

  and a relaxation of the hiring and firing regulations (the effects of

  which are significant only in the short run); (iii) the economic growth

  and unemployment rate also contribute to the decline of the adjusted

  wage share.'
affiliation: 'Liotti, G (Corresponding Author), Univ Messina, Messina, Italy.

  Liotti, Giorgio; Millemaci, Emanuele, Univ Messina, Messina, Italy.

  Salvati, Luigi, Univ Roma Tre, Rome, Italy.'
author: Liotti, Giorgio and Millemaci, Emanuele and Salvati, Luigi
author-email: giorgio.liotti@unime.it
author_list:
- family: Liotti
  given: Giorgio
- family: Millemaci
  given: Emanuele
- family: Salvati
  given: Luigi
da: '2023-09-28'
doi: 10.1080/09538259.2023.2165391
earlyaccessdate: JAN 2023
eissn: 1465-3982
files: []
issn: 0953-8259
journal: REVIEW OF POLITICAL ECONOMY
keywords: Labour market policies; wage share; Eurozone countries; panel data
keywords-plus: 'FUNCTIONAL INCOME-DISTRIBUTION; LABOR-MARKET FLEXIBILITY; UNEMPLOYMENT

  BENEFITS; AGGREGATE DEMAND; GROWTH; OECD; INEQUALITY; FINANCIALISATION;

  INSTITUTIONS; INSTABILITY'
language: English
month: 2023 JAN 31
number-of-cited-references: '99'
orcid-numbers: 'Millemaci, Emanuele/0000-0002-9095-7513

  Salvati, Luigi/0000-0002-1196-6017'
papis_id: 807d0b19e725d93863a791ea13417d57
ref: Liotti2023doflexibility
times-cited: '0'
title: Do Flexibility Measures Affect the Wage Share? An Empirical Analysis of Selected
  European Countries
type: article
unique-id: WOS:000919443900001
usage-count-last-180-days: '0'
usage-count-since-2013: '0'
web-of-science-categories: Economics
year: '2023'