Technology, profits and wages
Andrea Coveri () and
Mario Pianta ()
LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy
Building on a Post-Keynesian theoretical framework, integrated with an analysis of technology, this article investigates the structural determinants of income distribution. We develop a simultaneous model on wage and profit dynamics identifying as key determinants productivity growth, capital-labour conflict, the relevance of trade unions and different strategies of technological change and offshoring. We perform an industry-level analysis on 38 manufacturing and service sectors for six major European countries from 1994 to 2014. Wage and profit dynamics is shown to be rooted in structural change, productivity growth and capital-labour conflict, with profits driven by product innovation and offshoring, and wages rising faster where new products are relevant and trade unions have a greater role.
Keywords: Income distribution; innovation; offshoring; Europe; industries. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eec, nep-hme, nep-ino, nep-pke and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2019/35
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