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Wage Dispersion and Pension Funds: Financialisation of Non-Financial Corporations in the USA, 1966-2013
[working paper]
Corporate Editor
Universität Hamburg, Fak. Wirtschafts- und Sozialwissenschaften, FB Sozialökonomie, Zentrum für Ökonomische und Soziologische Studien (ZÖSS)
Abstract
It has already been pointed out in the literature on financialisation that private pension funds have played a key role in the inflation of financial markets. This paper argues that an increase in wage dispersion between white-collar and blue-collar workers affects pension funds in a direct and stru... view more
It has already been pointed out in the literature on financialisation that private pension funds have played a key role in the inflation of financial markets. This paper argues that an increase in wage dispersion between white-collar and blue-collar workers affects pension funds in a direct and structural manner. Using Saez-Zucman and fred.stlouisfed annual datasets, the proposed argument is statistically analysed by applying Vector Autoregressive modelling for the period 1966-2013 in the USA. The results show that the responses of share of pension funds within US-household wealth to one-unit shock in wage dispersion are positive and significant over the first three years. Furthermore, wage dispersion explains 11% of variations in pension funds’ share in household wealth in the short-run and 19% of variations in the long-run. The study concludes that wage dispersion has a direct and structural impact on pension funds and contributes to the literature by clarifying the rise and expansion of pension funds.... view less
Keywords
retirement pension; pension; funding; wage; wage difference; worker; salaried employee; pension fund; financial market; United States of America
Classification
Sociology of Work, Industrial Sociology, Industrial Relations
Social Security
National Economy
Document language
English
Publication Year
2017
City
Hamburg
Page/Pages
28 p.
Series
ZÖSS Discussion Paper, 63
ISSN
1868-4947
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications