Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/325826 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
ZÖSS Discussion Paper No. 121
Publisher: 
Universität Hamburg, Zentrum für Ökonomische und Soziologische Studien (ZÖSS), Hamburg
Abstract: 
This comment critically examines the recent claim by Alcobia and Barradas that the European Union follows a wage-led growth regime, warranting pro-labour policy intervention. While their findings support a clear policy stance, closer inspection reveals significant methodological and empirical shortcomings, including data limitations, panel heterogeneity, and questionable assumptions about causality. The paper challenges the robustness of their conclusions and questions whether functional income distribution can be effectively influenced by policy. It argues for greater theoretical caution and contextual sensitivity in policy recommendations, particularly given the unresolved ambiguities surrounding the wage- led/profit-led growth framework in diverse European economies.
Subjects: 
Post Keynesian economics
functional income distribution
wage-led regime research
JEL: 
C23
D33
E12
O47
Document Type: 
Working Paper

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