Please use this identifier to cite or link to this item:
Dögüs, Ilhan
Year of Publication: 
Series/Report no.: 
Discussion Papers, Zentrum für Ökonomische und Soziologische Studien 63
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.
pension funds
wage dispersion
savings out of salaries
white-collar workers
capital market inflation
Document Type: 
Working Paper

Files in This Item:
596.83 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.