Differences in Wage-Determination Systems between Regular and Non-Regular Employment in a Kaleckian Model
Ryunosuke Sonoda and
Hiroaki Sasaki ()
Authors registered in the RePEc Author Service: Takanori Ida
Discussion papers from Graduate School of Economics Project Center, Kyoto University
In this study, we build a Kaleckian model incorporating institutional differences between the wage determination of regular employment and that of non-regular employment. Using this model, we investigate how an employment shift toward regular workers affects the capacity utilization rate and income distribution. Our results show that while such shift in employment decreases the capacity utilization rate and increases the wage share of regular workers, it either increases or decreases the wage share of non-regular workers. An increase in the flexibility of the labor market, as seen in an employment shift toward non-regular workers, increases the amplitude of business cycles. However, the introduction of a minimum wage fornon-regular workers stabilizes the economy.
Keywords: wage gap; regular and non-regular employment; demand-led growth model (search for similar items in EconPapers)
JEL-codes: E12 E25 J31 (search for similar items in EconPapers)
Pages: 28 pages
New Economics Papers: this item is included in nep-ene, nep-exp and nep-mfd
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Journal Article: Differences in wage-determination systems between regular and non-regular employment in a Kaleckian model (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:kue:dpaper:e-14-018
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