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Centre party, district magnitude, and wage inequality in service economy

Economics

Centre party, district magnitude, and wage inequality in service economy

J. W. Son and J. H. Park

This intriguing study delves into service sector wage inequality across various nations. It posits that centrist party governments play a pivotal role in balancing employment flexibility and security, enhancing wage equity. The authors, Jung Wook Son and Jong Hee Park, present compelling empirical findings from OECD countries that reveal significant trends in wage inequality in relation to political dynamics.

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Playback language: English
Abstract
This paper investigates variations in service sector wage inequality across nations. It argues that the balance between employment flexibility and security, crucial for service sector growth and wage equity, is most effectively achieved under centrist party governments in high-magnitude electoral systems. Centrist parties, less tied to organized labor, can better represent the diverse, unorganized interests of service workers. High-magnitude systems incentivize broader coalitions addressing these varied concerns. Empirical analysis across 14 OECD countries (1995-2007) shows reduced service sector wage inequality with increasing district magnitude and centrist party cabinet share, particularly when these factors interact.
Publisher
Humanities and Social Sciences Communications
Published On
May 28, 2024
Authors
Jung Wook Son, Jong Hee Park
Tags
service sector
wage inequality
employment flexibility
centrist parties
OECD countries
political systems
labor representation

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