Full text: Wirtschaft und Gesellschaft - 2016 Heft 4 (4)

42. Jahrgang (2016), Heft 4

Wirtschaft und Gesellschaft

wage and salary earners in employment with the right to bargaining.33 This
variable is only available at the country level.
Furthermore, we account for social government spending defined as social transfers in kind from government to households measuring expenditure by government on market goods and services provided to households
such as health care, housing, recreational and cultural services, education
and social protection. This measure excludes social transfers in cash (reflecting welfare benefits), which we add to the previous measure for robustness tests. The variable is measured as percentage of GDP and obtained from the OECD National Accounts at a Glance database.
Furthermore we include the Gini-coefficient obtained from the “Standardized World Income Inequality Database”,34 and top 1 percent income
shares from the “World Wealth and Income Database”.35
Our country-level financialisation variables include interest and dividend
payments and income of nonfinancial corporations as a ratio to total resources of nonfinancial corporations obtained from the OECD Non-financial Accounts by Sectors Database which is part of the Annual Accounts
statistics. Furthermore we augment our analysis by a variable measuring
household debt as percentage of GDP from the Bank of International Settlements Total Credit Statistics.

3.2 Stylised Facts
While the decline in the aggregate country-level labour share is a welldocumented fact, there is only limited analysis of dynamics in functional income distribution at the sectoral level. We find that the trend observed in
the aggregate country level wage share is mirrored at the sectoral level, albeit with important differences between manufacturing and services sectors as well as high (HS) and low skilled (LS) sector groups and across
countries as can be seen in Figure 1 below for selected countries.
In Austria we observe one of the steepest declines in the wage share in
comparison to other European countries. The wage share in value added
of the sector is generally higher in the manufacturing industries than in services until the late 1990s, after which the wage share in manufacturing falls
below the wage share in the service sectors. This pattern is unique to Austria – most other countries exhibit a higher wage share in low skilled service industries than in manufacturing as can be seen in France, Germany
and the UK – and can well be related to imputed wages of owner entrepreneurs.
Within manufacturing sectors in Austria low skilled sectors maintained
the highest share of wages in value added in the economy until the mid1980s, but also exhibit the sharpest decline amongst all sector groups by
27 percentage-points from 85 percent to 58 percent between 1978 and

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