1 Comment

The third point is extremely important in inequality discussion. I call it the spill-over effect and research has shown: "Including the spill-over effect is important, as without taking it into account, we could be underestimating the impact of unionization on reducing wage inequality. Fortin, Lemieux and Lloyd find that in the period between 1979 and 2017, falling unionization rates can explain 40% of the increase in inequality between the 90th and 50th income percentile, which went up from 1.8x to 2.5x. The spill-over effect accounts for half, or 20%, of this rise in inequality."

Expand full comment