Democracies pay higher wages:

Controlling for labor productivity, income levels, and other possible determinants, there is a robust and statistically significant association between the extent of democratic rights and wages received by workers. The association exists both across countries and over time within countries. The coef...

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Bibliographic Details
Main Author: Rodrik, Dani 1957- (Author)
Format: Book
Language:English
Published: Cambridge, Mass. 1998
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 6364
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Online Access:Volltext
Summary:Controlling for labor productivity, income levels, and other possible determinants, there is a robust and statistically significant association between the extent of democratic rights and wages received by workers. The association exists both across countries and over time within countries. The coefficient estimates suggest that non-negligible wage improvements result from the enhancement of democratic institutions: average wages in a country like Mexico would be expected to increase by 10-30 percent were Mexico to attain a level of democracy comparable to that prevailing in the U.S.
Physical Description:9 S. graph. Darst.

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