Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105971
Authors: 
Palley, Thomas I.
Year of Publication: 
2012
Series/Report no.: 
IMK Working Paper 105
Abstract: 
This paper presents a neo-Kaleckian - Goodwin model of growth and distribution. The key innovation is the introduction of managerial pay. Kaleckian monopoly power determines the functional distribution of income and Goodwin labor bargaining power determines wage bill division. The model helps explain slower U.S. growth over the past thirty years. For much of that period the functional distribution of income was relatively constant, but growth slowed because income inequality increased owing to wage bill shift from workers to managers. The wage bill division effect explains why economies can display wage-led and profit-led characteristics. Economies can be profit-led regarding functional income distribution and wage-led regarding wage bill distribution.
Subjects: 
Neo-Kaleckian growth
Goodwin
managerial pay
unemployment
bargaining
JEL: 
E12
O41
O33
Document Type: 
Working Paper

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