We have removed the article Financialisation makes income distribution more unequal from September 2015 after its authors, Karsten Köhler, Alexander Guschanski, and Engelbert Stockhammer, informed us that they have retracted the working paper on which the article’s findings were based. Accuracy is central to the work of British Politics and Politics at LSE; we also appreciate that research is evolving and therefore are committed to acknowledging any problems openly.
Here is authors’ note on the retraction:
The working paper “How does financialisation affect functional income distribution? A theoretical clarification and empirical assessment” has been withdrawn at our request due to a coding error in the programme used to manage the dataset. We apologise for any inconvenience caused.
Your study and findings tally with recent global phenomena. It is true that if we divide global macro incomes equal to net global product in an assessment year in to two broad components like wages and profits of enterprise and further divide profits of entrprise to interest and profits , the global finacialicialisation is accompanied by rise of share of profits of entrprise and rise in the share of profit in normally accompanied by fall in share of wages unless in exceptional growth phases in technology driven economic booms.
The fall in share of wages may be accompanied by rise household credit and debt to keep the same status but it shifts the patterns of spending saving and investment and control over the economy.
The globalisation of Internet banking shifted the powers of financialisation of profits of entrprise and investment control patterns beyond the traditional national sovereign regulatory mechanisms including the international treaty mechanisms only further distorting market competitive and control methods which is tending to economic inequality in domestic and international economies.
On the whole I accept your version as an explanatory to the given findings of relation ship of wages to financialisation and economic inequality.