A Comparative Study on the Institutional Complementarities in Coordination of the sphere of Distribution and Production: Focus on the Determinants of Income Inequality

분배조정과 생산조정의 제도적 상보성에 관한 비교사회정책연구: 소득 불평등에 미친 영향을 중심으로

  • Published : 2005.11.30

Abstract

This paper examines the impact of the institutional complementarity between welfare regimes and production regimes on income inequality. Using comparative welfare data by various sources for 14 OECD nations from 1980 to 1997, this paper attempts to answer two questions. First, is there a institutional complementary in regulatory process between distribution and production? Second, if it is correct, what kind of causal structure do we predict? Panel Corrected Standard Errors(PCSE) model, a data analysis method in pooled cross-sectional time-series, is employed to examine the interaction effects between the two variables: coordination in the sphere of distribution; coordination in the sphere of production The evidence suggest that there are powerful interaction effects between distributive coordination and production coordination and that the institutional complementary has effects on income inequality. First, the income inequality effect of coordination in the sphere of distribution becomes less positive(more negative) as coordination in the sphere of production increases. Second, the income inequality effect of coordination in the sphere of production becomes less positive(more negative) as coordination in the sphere of distribution increases.

Keywords

institutional complementarity;coordination on the sphere of distribution;coordination on the sphere of production;income inequality