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From The Crisis Of Distribution To The Distribution Of The Costs Of The Crisis: What Can We Learn From Previous Crises About The Effects Of The Financial Crisis On Labor Share?, Özlem Onaran

PERI Working Papers

The paper analyzes the possible distributional consequences of the global crisis based on the lessons of the past crises experiences. The decline in the labor share across the globe has been a major factor that led to the current global crisis. What we are going through is a crisis of distribution, and similarly the policy reactions to the crisis are part of a distributional struggle. The paper presents the effects of the former crises in the developing countries and in Japan on income distribution, wages, and unemployment. This comparison is important not only because it compares developing vs. developed country …