Abstract

This dissertation is composed of three essays which examine the impact of financial integration and trade liberalization. Chapter I investigates the effect of financial openness on labor share of income by using four measures of the labor share of income: one unadjusted and three adjusted measures of income share which account for earnings from the self-employed workers. The author also uses both measures of capital account openness: de jure and de facto indicators. The empirical work is applied for a panel dataset of 30 countries during the period of 1970 – 2013. Despite using different measurement methods of the labor share of income and financial openness, the results from all specifications support the hypothesis that financial integration leads to a decline in the labor share of income for the all countries sample.