Full text: The political economy of income distribution: industry level evidence from Austria (156)

5.3 Estimation results for individual ‘high-wage’ countries27 
Our estimation results for France, Germany, the UK, the US, Denmark, Italy and Spain 
partially confirm our results for Austria, while they differ in interesting aspects as can be seen 
in Tables 10 to 16.
 The results in this section are based on Guschanski and Onaran, The causes of falling wage share 
and prospects for growth with equality in a globalized economy, Project Report for INET, (forthcoming). 
However, estimations for Austria and thereby comparison with Austria are not part of the project. 
 Data availability differs across countries, especially with regards to capital stock data for France and 
the UK where our cross sections are reduced to eight and eleven sectors as opposed to 19 for Austria for 
specifications (1) to (3). Furthermore we lose ‘the coke and refined petroleum products sector’ when we apply 
the first difference estimator for the UK in specification (7) and (8) because it has only 1 observation where all 
the data is available after cleaning. Exclusion of this sector does however not alter out results. We are able to 
increase the number of our cross sections to 11 if we estimate specifications (1) to (3) for France using data at 
the 1-digit level. However, this poses a trade-off since our import data is available at the 2-digit level and 
therefore requires aggregation and because previous results have indicated that the effect of intermediate import 
penetration is better observed at a highly disaggregated sectoral composition. However, our results are robust for 
estimations at 1- or 2-digit levels with respect to intermediate import penetration. Similar considerations apply 
to the US, where availability of data on the capital stock for the service sectors limits our sample and Spain 
where there is only very limited data on FDI. In fact, for Spain our sample is reduced to two to three 
observations per sectors, which in turn creates collinearity between several of our country level variables. For 
this reason we drop government spending from specification (7) and (8) while we estimate specification (8) 
without our financialisation variables. The data issues in combination with the limited availability of variables 
accounting for financialisation is also reason for the reduced number of cross-sections in our first difference 

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