. Institutions that decrease inequality are, however, associated with higher unemployment, and our analysis allows us to quantify the …

share, and the unemployment rate, hence labour market institutions are an essential determinant of the distribution of …, second, that stronger unions and a more generous unemployment benefit tend to reduce income inequality. High capital …

OECD. We first model the wage determination process and show that unemployment, the labour share, and the wage differential … is ambiguous. Stronger unions and/or a more generous unemployment benefit tend to reduce inequality through reduced wage … differentials, a higher labour share, and also higher unemployment. We then use a panel of OECD countries for the period 1970-96 to …