Report
Patrick Artus

How has the skewing of income distribution against wage earners in OECD countries been used?

Since 1999, income distribution has skewed very clearly in favour of profits and to the detriment of wage earners in OECD countries. How have companies used th is skewing of income distribution in their favour? They may have used it to: Increase investment; Deleverage; Increase shareholder remuneration; Finance acquisitions; Increase cash holdings. We find that the increase in the profit share of GDP in OECD countries has been used to increase shareholder remuneration, finance larger acquisitions and increase cash holdings, but not to increase investment or to reduce debt. This shows that the weak household demand caused by the weak wage growth has not been offset by an increase in corporate investment.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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