Ups and downs in finance, ups without downs in inequality
Olivier Godechot
(1, 2)
,
Nils Neumann
(1, 2)
,
Paula Apascaritei
(3)
,
István Boza
(4)
,
Martin Hallsten
(5)
,
Lasse Henriksen
(6)
,
Are Hermansen
(7, 8)
,
Feng Hou
(9)
,
Jiwook Jung
(10)
,
Naomi Kodama
(11)
,
Alena Křížková
(12)
,
Zoltán Lippényi
(13)
,
Elvira Marta
(14)
,
Silvia Maja Melzer
,
Eunmi Mun
(10)
,
Halil Sabanci
(3)
,
Matthew Soener
(15)
,
Max Thaning
(5)
1
MaxPo -
Max Planck Sciences Po Center on Coping with Instability in Market Societies
2 OSC - Observatoire sociologique du changement (Sciences Po, CNRS)
3 IESE Business school - University of Navarra
4 Institute of Economics [Budapest]
5 Stockholm University
6 CBS - Copenhagen Business School [Copenhagen]
7 UiO - University of Oslo
8 Swedish Institute for Social Research
9 Statistics Canada
10 UIUC - University of Illinois at Urbana-Champaign [Urbana]
11 Meiji Gakuin University
12 Institute of sociology (Sociologický ústav)
13 University of Groningen [Groningen]
14 UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra
15 Sciences Po - Sciences Po
2 OSC - Observatoire sociologique du changement (Sciences Po, CNRS)
3 IESE Business school - University of Navarra
4 Institute of Economics [Budapest]
5 Stockholm University
6 CBS - Copenhagen Business School [Copenhagen]
7 UiO - University of Oslo
8 Swedish Institute for Social Research
9 Statistics Canada
10 UIUC - University of Illinois at Urbana-Champaign [Urbana]
11 Meiji Gakuin University
12 Institute of sociology (Sociologický ústav)
13 University of Groningen [Groningen]
14 UPNA - Universidad Pública de Navarra [Espagne] = Public University of Navarra
15 Sciences Po - Sciences Po
Olivier Godechot
- Fonction : Auteur
- PersonId : 742658
- IdHAL : olivier-godechot
- ORCID : 0000-0003-3199-8144
- IdRef : 055742025
Nils Neumann
- Fonction : Auteur
- PersonId : 1188698
- ORCID : 0000-0002-3120-9849
István Boza
- Fonction : Auteur
- PersonId : 1188699
- ORCID : 0000-0002-3068-6627
Jiwook Jung
- Fonction : Auteur
- PersonId : 1188700
- ORCID : 0000-0002-9784-1206
Alena Křížková
- Fonction : Auteur
- PersonId : 1188701
- ORCID : 0000-0002-6616-3940
Silvia Maja Melzer
- Fonction : Auteur
Eunmi Mun
- Fonction : Auteur
- PersonId : 1188702
- ORCID : 0000-0003-4317-9904
Résumé
The upswing in finance in recent decades has led to rising inequality, but do downswings in finance lead to a symmetric decline in inequality? We analyze the asymmetry of the effect of ups and downs in finance, and the effect of increased capital requirements and the bonus cap on national earnings inequality. We use administrative employer–employee-linked data from 1990 to 2019 for 12 countries and data from bank reports, from 2009 to 2017 in 13 European countries. We find a strong asymmetry in the effect of upswings and downswings in finance on earnings inequality, a weak, if any, mitigating effect of capital requirements on finance’s contribution to inequality, and a restructuring but no absolute effect of the bonus cap on financiers’ earnings. We suggest that while rising financiers’ wages increase inequality in upswings, they are resilient in downswings and thus downswings do not contribute to a symmetric decline in inequality.
Format du dépôt | Fichier |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Ups and downs in finance, ups without downs in inequality
|
Résumé |
en
The upswing in finance in recent decades has led to rising inequality, but do downswings in finance lead to a symmetric decline in inequality? We analyze the asymmetry of the effect of ups and downs in finance, and the effect of increased capital requirements and the bonus cap on national earnings inequality. We use administrative employer–employee-linked data from 1990 to 2019 for 12 countries and data from bank reports, from 2009 to 2017 in 13 European countries. We find a strong asymmetry in the effect of upswings and downswings in finance on earnings inequality, a weak, if any, mitigating effect of capital requirements on finance’s contribution to inequality, and a restructuring but no absolute effect of the bonus cap on financiers’ earnings. We suggest that while rising financiers’ wages increase inequality in upswings, they are resilient in downswings and thus downswings do not contribute to a symmetric decline in inequality.
|
Auteur(s) |
Olivier Godechot
1, 2
, Nils Neumann
1, 2
, Paula Apascaritei
3
, István Boza
4
, Martin Hallsten
5
, Lasse Henriksen
6
, Are Hermansen
7, 8
, Feng Hou
9
, Jiwook Jung
10
, Naomi Kodama
11
, Alena Křížková
12
, Zoltán Lippényi
13
, Elvira Marta
14
, Silvia Maja Melzer
, Eunmi Mun
10
, Halil Sabanci
3
, Matthew Soener
15
, Max Thaning
5
1
MaxPo -
Max Planck Sciences Po Center on Coping with Instability in Market Societies
( 237254 )
- Allemagne
2
OSC -
Observatoire sociologique du changement (Sciences Po, CNRS)
( 1010 )
- 27, rue Saint-Guillaume
75337 Paris Cedex 07
- France
3
IESE Business school - University of Navarra
( 1055755 )
- Espagne
4
Institute of Economics [Budapest]
( 505632 )
- 1097 Budapest Tóth Kálmán u. 4.
- Hongrie
5
Stockholm University
( 300563 )
- SE-106 91 Stockholm
- Suède
6
CBS -
Copenhagen Business School [Copenhagen]
( 300903 )
- Solbjerg Pl. 3, 2000 Frederiksberg, Copenhagen
- Danemark
7
UiO -
University of Oslo
( 50791 )
- P.O 1072 Blindern 0316 Oslo
- Norvège
8
Swedish Institute for Social Research
( 185922 )
- Universitetsvägen 10E, SE-10691 Stockholm
- Suède
9
Statistics Canada
( 161741 )
- Ottawa
- Canada
10
UIUC -
University of Illinois at Urbana-Champaign [Urbana]
( 303576 )
- 205 N. Mathews Ave., Urbana-Champaign, IL 61801
- États-Unis
11
Meiji Gakuin University
( 310983 )
- 1 Chome-2-37 Shirokanedai, Minato City, Tokyo 108-8636
- Japon
12
Institute of sociology (Sociologický ústav)
( 121621 )
- Tchéquie
13
University of Groningen [Groningen]
( 131861 )
- PO Box 72 , 9700 AB Groningen
- Pays-Bas
14
UPNA -
Universidad Pública de Navarra [Espagne] = Public University of Navarra
( 160788 )
- Campus de Arrosadia 31006 Pamplona
- Espagne
15
Sciences Po -
Sciences Po
( 301587 )
- 27, rue Saint-Guillaume - 75337 Paris cedex 07
- France
|
Licence |
Paternité - Pas d'utilisation commerciale - Pas de modification
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Commentaire |
The research and writing of this paper benefited from the monetary support of the following institutions: National Agency for Research (grant ANR-17-CE41-0009-01), Alexander von Humboldt-Foundation (grant AR8227), Independent Research Fund Denmark (grant 5052- 00143b), Swedish Research Council for Health, Working Life and Welfare supports (grant 2015-00807), European Social Fund and state budget of the Czech Republic (grant CZ.03.1.51/0.0/0.0/15_009/0003702), Rozvoj Vyzkumne´ Organizace (RVO:68378025), NPO “Systemic Risk Institute” LX22NPO5101, Chair in Family-Owned Business at IESE, Research Council of Norway (grant 287016), the Spanish Ministry of Science and Innovation (grant nr. PID2020-118807RB-I00/AEI/10.13039/501100011033), the Fritz Henkel Foundation (Endowed PhD Scholarship), Swedish Forte (grant nr. 2015-00807), from the European Research Council ERC Advanced Grant (grant nr. 340045), and the US National Science Foundation (grant SES-1528294).
|
Date de publication électronique |
2022-07-15
|
URL éditeur |
https://academic.oup.com/ser/article/21/3/1601/6644998
|
Date de publication |
2023-07
|
Volume |
21
|
Numéro |
3
|
Page/Identifiant |
1601-1627
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Projet(s) ANR |
|
Référence interne |
|
Mots-clés |
en
inequality, finance, financial crisis, regulation
|
DOI | 10.1093/ser/mwac036 |
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Licence : Paternité - Pas d'utilisation commerciale - Pas de modification - CC BY 4.0
Licence : Paternité - Pas d'utilisation commerciale - Pas de modification - CC BY 4.0
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Licence : Paternité - Pas d'utilisation commerciale - Pas de modification - CC BY 4.0
Licence : Paternité - Pas d'utilisation commerciale - Pas de modification - CC BY 4.0
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