Globalisation, Accumulation and Inequality – the Case of Germany

Ulf von Kalckreuth and Ziebarth Gerhard ()
Additional contact information
Ziebarth Gerhard: Deutsche Bundesbank, Economic Research Center, Wilhelm-Epstein-Str. 14, 60431 Frankfurt/M.

Zeitschrift für Wirtschaftspolitik, 2007, vol. 56, issue 2, 231-254

Abstract: We study the conditions under which in a small open economy the labour share in national income may retain a stable value and the significance of primary savings from labour income is maintained. We conclude that the growth of domestic product must not be lower than the real rate of return on capital weighted by the savings ratio of asset holders. For Germany, we estimate a hurdle rate of growth of about 1.5 % that must be surpassed in the long run just to prevent the labour share from falling indefinitely. The condition has not been met for a number of years, because of chronically sluggish growth and high structural unemployment. We present a dynamic model of economic integration to show that, to a large extent, this pattern is an effect of globalisation. Besides fostering innovation, reinforcing the education system should have priority.

Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/zfwp-2007-0206 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lus:zwipol:v:56:y:2007:i:2:p:231-254:n:6

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/zfwp/html

DOI: 10.1515/zfwp-2007-0206

Access Statistics for this article

Zeitschrift für Wirtschaftspolitik is currently edited by Juergen B. Donges, Steffen J. Roth, Achim Wambach and Christian Watrin

More articles in Zeitschrift für Wirtschaftspolitik from De Gruyter
Bibliographic data for series maintained by Peter Golla ().