Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333142 
Year of Publication: 
2025
Citation: 
[Journal:] Wirtschaft und Gesellschaft (WuG) [ISSN:] 0378-5130 [Volume:] 51 [Issue:] 1 [Year:] 2025 [Pages:] 79-112
Publisher: 
Kammer für Arbeiter und Angestellte für Wien, Wien
Abstract: 
In this paper, we examine if and to what extent the Kaleckian theory of markup pricing can explain changes in functional income distribution in an environment of financialization. Following this approach, we expect financialization to influence the aggregate wage share through three channels: (1) sectoral recomposition, (2) financial overhead costs and rentiers' profit claims, and (3) bargaining power of trade unions and workers. We empirically analyse the long-term trends for each of the channels before and after the Global Financial Crisis and the Great Recession for Austria and Finland. Overall, we find evidence for all three redistribution channels contributing to the changes in functional income distribution. However, the explanatory power of the individual channels differs strongly due to the heterogeneity of the countries.#In this paper, we examine if and to what extent the Kaleckian theory of markup pricing can explain changes in functional income distribution in an environment of financialization. Following this approach, we expect financialization to influence the aggregate wage share through three channels: (1) sectoral recomposition, (2) financial overhead costs and rentiers' profit claims, and (3) bargaining power of trade unions and workers. We empirically analyse the long-term trends for each of the channels before and after the Global Financial Crisis and the Great Recession for Austria and Finland. Overall, we find evidence for all three redistribution channels contributing to the changes in functional income distribution. However, the explanatory power of the individual channels differs strongly due to the heterogeneity of the countries.
Subjects: 
Finance-dominated capitalism
Financialisation
distribution
financial and economic crisis
Kaleckian theory of distribution
Finance-dominated capitalism
financialization
distribution
financial and economic crisis
Kaleckian theory of distribution
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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