Labor share and the Gini coefficient, 1990–2015
| Dependent variable: Gini coefficient (in logs) | Fixed effects (1) | System GMM (2) |
|---|---|---|
| Lag of dependent variable [a1] | 0.4547*** (0.0859) | 0.6401*** (0.0773) |
| LaborShare [a2] | −0.0026** (0.0013) | −0.0036** (0.0018) |
| GDPpc [a3] | −0.0308 (0.2247) | −0.2978*** (0.0991) |
| IFI [a4] | 0.0170 (0.0107) | 0.0243*** (0.0085) |
| TradeOpenness [a5] | −0.0633* (0.0356) | −0.0747*** (0.0214) |
| Dummy: consumption [a6] | −0.0050 (0.0182) | −0.0238 (0.0162) |
| Dummy: household [a7] | 0.1310*** (0.0219) | 0.0434 (0.0577) |
| Dummy: gross income [a8] | −0.0560* (0.0316) | −0.0952** (0.0423) |
| Constant [a0] | −0.3415*** (0.1034) | −0.0777 (0.0973) |
| R2 | 0.95 | |
| No. of observations | 724 | 724 |
| No. of countries | 62 | 62 |
| No. of instruments | 83 | |
| Hansen test | 19.57 (1.00) | |
| First-order autocorrelation | −2.53 (0.00) | |
| Second-order autocorrelation | −2.33 (0.10) |
| Dependent variable: | Fixed effects | System GMM |
|---|---|---|
| Lag of dependent variable [ | 0.4547 | 0.6401 |
| −0.0026 | −0.0036 | |
| −0.0308 (0.2247) | −0.2978 | |
| 0.0170 (0.0107) | 0.0243 | |
| −0.0633 | −0.0747 | |
| Dummy: consumption [ | −0.0050 (0.0182) | −0.0238 (0.0162) |
| Dummy: household [ | 0.1310 | 0.0434 (0.0577) |
| Dummy: gross income [ | −0.0560 | −0.0952 |
| Constant [ | −0.3415 | −0.0777 (0.0973) |
| 0.95 | ||
| No. of observations | 724 | 724 |
| No. of countries | 62 | 62 |
| No. of instruments | 83 | |
| Hansen test | 19.57 (1.00) | |
| First-order autocorrelation | −2.53 (0.00) | |
| Second-order autocorrelation | −2.33 |
Notes:
Robust standard errors clustered by country are in parenthesis in the upper part of the table. Time and country dummies included.
Significant at 10% level;
Significant at 5% level;
Significant at 1% level. p-values for the diagnostic testing of GMM are in parenthesis in the lower part of the table
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