Shareholder Primacy and Worker Prosperity: A Broken Link

31 Pages Posted: 19 Nov 2018

See all articles by Lenore Palladino

Lenore Palladino

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics; Franklin & Eleanor Roosevelt Institute

Date Written: June 29, 2018

Abstract

The increasing financialization of America’s large public companies has profoundly affected labor markets. Wages are stagnant, income inequality has grown, and corporate America is no longer a provider of stable employment for middle-class workers. Common explanations include globalization, the rising power of the financial sector itself, the decline of trade union power, and skill-biased technical change. However, changes in how corporations earn profits, and how they use those profits—the two strands of behavior that I call corporate financialization—are key drivers of rising economic insecurity, and require further consideration.

Keywords: Shareholder Primacy; Inequality; Stock Buybacks

Suggested Citation

Palladino, Lenore, Shareholder Primacy and Worker Prosperity: A Broken Link (June 29, 2018). Kansas Law Review, Vol. 66, No. 34, 2018. Available at SSRN: https://ssrn.com/abstract=3274358

Lenore Palladino (Contact Author)

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics ( email )

Amherst, MA 01003
United States

Franklin & Eleanor Roosevelt Institute ( email )

4079 Albany Post Rd.
Hyde Park, NY 12538
United States

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