The current economic crisis has renewed interest in the importance of equitable income distribution for development, employment and social cohesion. But there is no consensus on how best to achieve equity. Many academics and policy-makers have argued that increased education and training opportunities will improve income distribution, but little attention has been paid to the role that labour market institutions could play.
This research programme seeks to better understand how wage and income inequality are affected by labour market institutions – including minimum wages, collective bargaining, type of employment contract, social security, social assistance and the provision of public goods.
Recognizing that the structure of an economy, market forces and labour institutions all shape wages and incomes in a country, the research will analyse different levels of distribution, including between wages and profits (functional distribution), amongst workers (primary distribution) and within and amongst households (secondary distribution). The research programme will also analyse how wage and income inequality affect job creation and social and economic development, paying attention to the link between equity and macroeconomic performance.
The overall objective of the research programme is to inform the policy advice given to ILO constituents on the scope and limitations of labour market institutions for altering the distribution of income.
Featured publications
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International Journal of Labour Research
This issue of the International Journal of Labour Research provides an important contribution to the intellectual endeavor of understanding what led to the crisis and to establishing new building blocks for an alternative macroeconomic and development paradigm.
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International Journal of Labour Research
This special issue of the International Journal of Labour Research is wholly dedicated to the question of the minimum wage, a matter that has gained in importance and profile in recent years.
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ILO Research Paper
This paper revisits the relationship between inequality and redistribution. The findings challenge the narrow concept of rational choice and points towards fairness orientations, which is emphasized in behavioural economics for a better understanding of redistributive outcomes.
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Book
This book provides an in-depth overview of the effects of the crisis on inequalities in the world of work. It examines these inequalities multi-dimensionally, looking at employment, wages and incomes, working conditions and social dialogue.
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Book
This book looks at the role that collective bargaining plays in ensuring that workers are able to obtain a fair share of the benefits arising from participation in the global economy and in providing a measure of security against the risk to employment and wages.