Some New Insights on Financialisation and Income InequalityMarwil J. Dávila-Fernández () and Lionello F. Punzo () Department of Economics University of Siena from Department of Economics, University of Siena Abstract: In this paper, we study the relationship between income distribution and financialisation in the United States after the Second World War. Financialisation is introduced as a two-fold process. On the one hand, it can be understood as an increase in the contribution of the financial sector regarding the composition of production, or a flow dimension. On the other hand, we can see it as an increase in the importance of financial assets in terms of the composition of wealth, or a stock dimension. We make use of the share of financial employment on total employment as a proxy of the first dimension while wealth composition is measured as the share of financial assets on corporations' total assets. Applying cointegration techniques, we identied a positive long-run relationship between financialisation and income inequality. Causality goes from the flow dimension to inequality and from inequality to the stock dimension. Keywords: Financialisation; Income inequality; Wealth; United States. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:792 Access Statistics for this paper More papers in Department of Economics University of Siena from Department of Economics, University of Siena Contact information at EDIRC. |
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