Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98616
Authors: 
Rada, Codrina
Kiefer, David
Year of Publication: 
2013
Series/Report no.: 
Working Paper, University of Utah, Department of Economics 2013-13
Abstract: 
We explore four decades of cyclical and long-run dynamics in income distribution and economic activity for a panel of thirteen OECD countries. Based on predator-prey dynamics, we find that the business cycle is weakly profit-led , and that the long-run equilibrium has been shifting towards a lower wage share. We hypothesize that a race to the bottom can arise from a need to be competitive in globalized markets. While globalization does have a negative effect on the wage share, other factors and trends have independent influences. Unionization is pro-labor, while contractionary monetary policy, R&D spending and more financialization are anti-labor.
Subjects: 
predator-prey models
distributive-demand dynamics
panel data estimation
JEL: 
D3
C23
Document Type: 
Working Paper

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