Finance and Labor: Perspectives on Risk, Inequality, and Democracy

48 Pages Posted: 25 Oct 2007 Last revised: 30 Dec 2009

See all articles by Sanford M. Jacoby

Sanford M. Jacoby

University of California, Los Angeles

Date Written: October 1, 2008


This paper considers the association between financial development and labor-market outcomes such as risk and inequality. The relationship is not straightforward, however. It is mediated by politics at the national and corporate levels. Politics spurs financial development, which sets in motion countervailing efforts to restrain the effect of finance on inequality and risk. The empirical analysis relies on historical, comparative, and contemporary evidence. Emphasis is given to recent events in the United States: the political origins of contemporary financial development and attempts by organized labor and its allies to re-regulate finance and reshape corporate governance.

Keywords: labor, shareholders, financial regulation, pensions, risk, corporate governance, unions, inequality

JEL Classification: D23, D63, G23, G34, J32, J41, J51, K22, N22

Suggested Citation

Jacoby, Sanford M., Finance and Labor: Perspectives on Risk, Inequality, and Democracy (October 1, 2008). Available at SSRN: or

Sanford M. Jacoby (Contact Author)

University of California, Los Angeles ( email )

Los Angeles, CA 90095-1481
United States
310-2109362 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics