A neo-Kaleckian–Goodwin model of capitalist economic growth: monopoly power, managerial pay and labour market conflict

Thomas Palley

Cambridge Journal of Economics, 2014, vol. 38, issue 6, 1355-1372

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 labour bargaining power determines the wage-bill division. The model helps explain slower US growth over the past 30 years. For much of that period the functional distribution of income was relatively constant, but growth slowed because income inequality increased owing to a 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.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1093/cje/bet001 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:cambje:v:38:y:2014:i:6:p:1355-1372.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Cambridge Journal of Economics is currently edited by Jacqui Lagrue

More articles in Cambridge Journal of Economics from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().