Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105992
Authors: 
Palley, Thomas I.
Year of Publication: 
2014
Series/Report no.: 
IMK Working Paper 130
Abstract: 
This paper presents a three class growth model with labor market conflict. The classes are workers, a middle management middle class, and a "top" management capitalist class. The model introduces personal income distribution that supplements conventional concerns with functional income distribution. Within such a model, endogenously generated changes in personal income distribution can generate endogenous shifts from profit-led to wage-led regimes and vice-versa. A model of an economy with three classes enables us to consider richer patterns of class conflict because the middle class has shared interests and conflicts with both capitalists and workers. Changes that benefit the middle class do not necessarily increase growth or employment or benefit workers.
Subjects: 
Middle class
class conflict
economic growth
income distribution
managerial pay
bargaining power
JEL: 
E12
O41
O33
Document Type: 
Working Paper

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