The effect of financial crises on distribution and employment


Type Research Project

Funding Bodies
  • Austrian National Bank

Duration Jan. 1, 2006 - May 31, 2007

http://www.wu-wien.ac.at/arbeitsmarkt/staff/onaran/
  • Economics 9/Employment Theory and Policy AE (Former organization)

Tags

Press 'enter' for creating the tag
  • Onaran, Özlem (Former researcher) Project Head
 

Abstract (German)

This project is granted by the "Dr.-Heinz-Kienzl-Preis", jointly awarded by the Austrian Central Bank and WU. The aim of the project is to analyze the effects of financial crises on income distribution and employment. Financial crises have become more frequent throught the world economy in the past two decades. While there are extensive policy debates on how to prevent these from happening, a sober view will concede that, despite measures to be taken, financial crises may well continue to occur frequently. High current account deficits in USA, but also in some emerging economies such as Hungary and Turkey, even suggest that they may not be far away. If so, it is important to undertand the effects that financial crises have.

This research proposal focuses on the effects on functional income distribution and employment, an aspect so far neglected in the literature. Since most volatility in the financial markets can be observed in emerging markets, the empirical analysis will be carried out for the most dynamic of these emerging markets (Argentina, Brazil, Chile, Mexico, Turkey, Indonesia, Korea, Malaysia, the Philippines, and Thailand).

This analysis is expected to generate insights relevant for emerging economies as well as for developed economies. Firstly, financial crises have become a more frequent phenomon in developed countries as well. The extensive role of governments in these countries has yet cushioned the effects, but presumably the effects will be structurally similar. Secondly, the adverse effects of these financial crises have implications beyond the borders of the emerging markets. If financial crises are generating persistent adverse effects on income distribution, and employment in the major exporting countries of the world economy, these will have spill over effects on advanced economies, particularly the new membver states of the EU, through international competition and financial flows.


Abstract (English)

This project is granted by the "Dr.-Heinz-Kienzl-Preis", jointly awarded by the Austrian Central Bank and WU. The aim of the project is to analyze the effects of financial crises on income distribution and employment. Financial crises have become more frequent throught the world economy in the past two decades. While there are extensive policy debates on how to prevent these from happening, a sober view will concede that, despite measures to be taken, financial crises may well continue to occur frequently. High current account deficits in USA, but also in some emerging economies such as Hungary and Turkey, even suggest that they may not be far away. If so, it is important to undertand the effects that financial crises have.

This research proposal focuses on the effects on functional income distribution and employment, an aspect so far neglected in the literature. Since most volatility in the financial markets can be observed in emerging markets, the empirical analysis will be carried out for the most dynamic of these emerging markets (Argentina, Brazil, Chile, Mexico, Turkey, Indonesia, Korea, Malaysia, the Philippines, and Thailand).

This analysis is expected to generate insights relevant for emerging economies as well as for developed economies. Firstly, financial crises have become a more frequent phenomon in developed countries as well. The extensive role of governments in these countries has yet cushioned the effects, but presumably the effects will be structurally similar. Secondly, the adverse effects of these financial crises have implications beyond the borders of the emerging markets. If financial crises are generating persistent adverse effects on income distribution, and employment in the major exporting countries of the world economy, these will have spill over effects on advanced economies, particularly the new membver states of the EU, through international competition and financial flows.

Publications

Journal article

2009 Onaran, Özlem. 2009. Wage share, globalization, and crisis: The case of manufacturing industry in Korea, Mexico, and Turkey. International Review of Applied Economics 23 (2): 113-134. (Details)

Chapter in edited volume

2008 Onaran, Özlem. 2008. Life after crisis for labor and capital. In: Neoliberal Globalization as New Imperialism: Case Studies on Reconstruction of the Periphery, Hrsg. Yeldan E., Kose, A. und Senses, F., 171-195. New York: Nova Scientific Publishers. (Details)
  Onaran, Özlem. 2008. Wage share, globalization, and crisis: The case of manufacturing industry in Korea, Mexico, and Turkey. In: Globalization and income inequality, Hrsg. Lee, K-K, 58-101. Seoul: Korea Institute for Health and Social Affairs. (Details)
  Onaran, Özlem. 2008. Finanzmärkte in Osteuropa und der Türkei: Kann `es` auch hier passieren?. In: Asienkrise: Lektionen gelernt? Finanzmärkte und Entwicklung, Hrsg. K. Kuebelboeck, Staritz, C., 100-120. Hamburg: VSA-Verl. (Details)
2007 Onaran, Özlem. 2007. International financial markets and fragility in the Eastern Europe: "can it happen" here?. In: Dollarization, Euroization and Financial Instability, Hrsg. Becker, J. und Weissenbacher, R., 129-148. Marburg: Metropolis-Verl.. (Details)
  Onaran, Özlem. 2007. Die Auswirkung von neoliberaler Globalisierung und von Krisen auf die Lohnquote in Entwicklungsländern. In: Kapitalismus und wirtschaftliche Entwicklung in Nord und Süd. Kritische Perspektiven, Hrsg. Becker, J., Imhof, K., Jäger, J., Staritz, C., 184-207. Wien: Mandelbaum. (Details)
2006 Onaran, Özlem. 2006. Speculation-led growth and fragility in Turkey: Does EU make a difference or “can it happen again?. In: Macroeconomics and Macroeconomic Policies - Alternatives Approaches to European Policies, Hrsg. Hein, E., A. Heise, and Truger, A, 199-227. Malburg: Metropolis-Verl.. (Details)

Paper presented at an academic conference or symposium

2006 Onaran, Özlem. 2006. Capital Flows & Financial Fargility in Turkey and Lessons for Europe’s Periphery. • 10th Workshopof the Research Network Alternative Macroeconomic Policies, berlin, Deutschland, 27.10-28.10. (Details)
  Onaran, Özlem. 2006. Capital Flows & Financial Fargility in Turkey and Lessons for Europe’s Periphery. • Annual Conference of European Association for Evolutionary Political Economy, Istanbul, Türkei, 02.11-04.11. (Details)

Working/discussion paper, preprint

2007 Onaran, Özlem. 2007. Wage Share, Globalization, and Crisis: The case of manufacturing industry in Korea, Mexico, and Turkey. Political Economy Research Institute, University of Massachusetts, Working Paper 132. (Details)

Unpublished lecture

2008 Onaran, Özlem. 2008. Globalization and Labor. Summer School: Keynesian Macroeconomics and European Economic Policies’, Research Network Macroeconomics and Macroeconomic Policies,, Berlin, 31.07. (Details)
  Onaran, Özlem. 2008. Financial crises and income distribution in the developing countries. Latin American Institute, Free University,, Berlin, 02.07. (Details)
  Onaran, Özlem. 2008. Globalization and Developing Countries. Berlin School of Economics and InWent Capacity Building, Berlin, 06.06. (Details)
2007 Onaran, Özlem. 2007. Labor’s Share in Developing Countries and Financial Crises”,. Making Financial Markets Work for Development 10 Years After The Asian Financial Crisis – Lessons Learnt?, Wien, 18.09. (Details)

Expertise

  • development
  • financial crisis
  • employment
  • income distribution