KEYWORDS: DECLINING WORKER POWER, CORPORATE INVESTMENT, MINIMUM WAGE, GLOBALIZATION, US-CHINA
JEL CODES: E2, J38, G31, F61
학회소식
[2022년 5차 CAFM2022]How Does Declining Worker Power Affect Investment Sensitivity to Minimum Wage?
작성자 : 관리자
조회수 : 267
게시일 :
2022-12-20
Declining worker bargaining power has been advanced as an explanation for changes in the U.S. macroenvironment, such as growing wealth inequality and the decline in labor’s share of national income. We investigate microeconomic implications by examining the effect of declining worker power on firm-level investment responses to mandated increases in the minimum wage. Over the past four decades, investment-wage sensitivities go from negative to insignificant as management becomes less constrained and can pursue outside options. Consistent with drivers of weakening worker power, investment-wage sensitivity changes are more significant for firms that are more exposed to globalization, technological change, and declining unionization.
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