The middle class in macroeconomics and growth theory: A three class neo-Kaleckian ? Goodwin model

Thomas Palley

No 130-2013, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

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.

Keywords: Middle class; class conflict; economic growth; income distribution; managerial pay; bargaining power (search for similar items in EconPapers)
JEL-codes: E12 O33 O41 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.boeckler.de/pdf/p_imk_wp_130_2013.pdf (application/pdf)

Related works:
Journal Article: The middle class in macroeconomics and growth theory: a three-class neo-Kaleckian–Goodwin model (2015)
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:imk:wpaper:130-2013

Access Statistics for this paper

More papers in IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute Contact information at EDIRC.
Bibliographic data for series maintained by Sabine Nemitz ().