FUNCTIONAL INCOME DISTRIBUTION IN FINANCIAL LIBERALIZATION ERA: A LITERATURE SURVEY ON REALIZATIONS AND INTERACTION MECHANISMS

The aim of this study is to examine the causes of the deterioration in functional income distribution at global level since 1980, with the mainstream and heterodox literature. When discussions are made, while the mainstream literature generally focuses on skill-biased technical change (technological change), heterodox approaches highlight the new economic architecture created by globalization and financialization. The study has reached the conclusion that heterodox approaches have drawn a broader framework to explain the decline in labor incomes. However, it has been underlined that the co-operation of skill-biased technical change and financialization phenomena will have an efficient and meaningful explanation power