Analyses & Alternatives 2024 KCI Impact Factor : 0.71
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pISSN : 2508-822X / eISSN : 2508-8238
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Income Inequality and Labour Union in the Era of Globalization: Examining Interaction Effects with Institutional and Political Contexts
- Analyses & Alternatives
- Abbr : A&A
- 2024, 8(3), pp.171~200
- DOI : 10.22931/aanda.2024.8.3.007
- Publisher : Korea Consensus Institute
- Research Area : Social Science > Social Science in general
- Received : September 22, 2024
- Accepted : October 12, 2024
- Published : October 31, 2024
Youngho Shin 1, Youngho Cho 1
1Department of Political Science, Sogang University
Accredited
ABSTRACT
Labour unions have traditionally been regarded as a key actor in improving income inequality. However, recent studies have revealed that the relationship between labour unions and income inequality is not straightforward but it varies depending on various institutional and political contexts. This study focuses on institutions of collective bargaining and government partisanship as major conditions affecting the income inequality reduction effect of labour unions and attempts an empirical analysis. In particular, we systematically analyzed the effects of union density on income inequality in terms of market income and disposable income, using panel data from OECD countries of the period 1990~2019 when the Cold War ended and globalization intensified. The analytical results show that the effect of unions on reducing income inequality was more pronounced in disposable income than in market income, and the effect was conditional. The union's effects varied depending on the degree of centralization of collective bargaining rather than the coordination mechanism. Contrary to previous studies, the union's impact was evidenced in centrist governments rather than left-wing governments. These findings indicates that in the era of globalization, labour unions are adopting more flexible political strategies, moving away from their traditional relationship with left-wing parties. These results suggests that unions' political and economic roles shows both continuity and change in the era of rising inequality.
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This paper was written with support from the National Research Foundation of Korea.