Is There a Social Kuznets Curve? The Influence of Labour Standards on Inequality
This study empirically investigates the impact of core labour standards on income inequality for a range of 90 countries from 1990-2000. A synthetic index of labour standards is computed by means of a Multiple Correspondence Analysis and no significant correlation is found with the Gini index. One of the reasons pointed out is that the effective implementation of core labour standards depends on the quality of the country's political and legal systems. Using instrumental variables in a TSLS model, we found an inverse 'U' shaped curve between the new endogenous index of core labour standards and income inequality.
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