Wage Dispersion and Pension Funds: Financialisation of Non-Financial Corporations in the USA, 1966-2013

Arbeitspapier | Working paper

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.

Object Details

• ISSN: 1868-4947
• Extent: Seite(n): 28
• Language: Englisch
• Notes: Status: Veröffentlichungsversion

References and Relationships

• Bibliographic citation: ZÖSS Discussion Paper (63)

Classification and Topics

• Subject: Soziologie, Anthropologie ; Sozialwissenschaften, Soziologie ; Wirtschaft ; Industrie- und Betriebssoziologie, Arbeitssoziologie, industrielle Beziehungen ; soziale Sicherung ; Volkswirtschaftstheorie ; Pension ; Rente ; Finanzierung ; Lohn ; Lohnunterschied ; Arbeiter ; Angestellter ; Rentenfond ; Finanzmarkt ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dögüs, Ilhan
• Event: Veröffentlichung
• (who): Universität Hamburg, Fak. Wirtschafts- und Sozialwissenschaften, FB Sozialökonomie, Zentrum für Ökonomische und Soziologische Studien (ZÖSS)
• (where): Deutschland, Hamburg
• (when): 2017

Further information

• URN: urn:nbn:de:0168-ssoar-59934-9
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST