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Financialization and Income Inequality in the U nited S tates, 1967–2010
Author(s) -
Van Arnum Bradford M.,
Naples Michele I.
Publication year - 2013
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/ajes.12036
Subject(s) - financialization , economics , unemployment , economic inequality , inequality , labour economics , welfare economics , finance , macroeconomics , mathematics , mathematical analysis
This article presents a historical overview of the late 20 th ‐century advent of financialization, that is, the unprecedented growth of the financial sector. We summarize its origins and consequences, particularly greater income inequality. An econometric model quantifies the relationship. We conclude that along with higher unemployment and an eroding minimum wage, the growth of the U . S . financial sector has contributed to the exacerbation of inequality in recent decades.