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The wage-wage-...-wage-profit relation in a multisector bargaining economy

Author

Listed:
  • A. J. Julius

    (New School University)

Abstract
The equalization of profit rates across a multisector production economy subject to Nash bargaining over wages supports an industry wage structure like those that account for a large fraction of actual wage dispersion and a wage-wage-...-wage-profit surface on which the general profit rate can vary inversely or directly with the wage paid in a given industry. Institutional changes that compress or decompress the wage distribution depend for support on industrially specific cross-class coalitions of workers and capitalists. Technical changes that raise capitalists' profits in current prices can lower the equilibrium profit rate.

Suggested Citation

  • A. J. Julius, 2005. "The wage-wage-...-wage-profit relation in a multisector bargaining economy," GE, Growth, Math methods 0501003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpge:0501003
    Note: Type of Document - pdf; pages: 31
    as

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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/ge/papers/0501/0501003.pdf
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    References listed on IDEAS

    as
    1. Gilbert L. Skillman, 1997. "Technical Change and the Equilibrium Profit Rate in a Market with Sequential Bargaining," Metroeconomica, Wiley Blackwell, vol. 48(3), pages 238-261, October.
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    3. Burgstaller,Andre, 1994. "Property and Prices," Cambridge Books, Cambridge University Press, number 9780521419031, September.
    4. Mahmood Arai, 2003. "Wages, Profits, and Capital Intensity: Evidence from Matched Worker-Firm Data," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 593-618, July.
    5. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    6. Maury Gittleman & Edward N. Wolff, 1993. "International Comparisons Of Inter‐Industry Wage Differentials," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 295-312, September.
    7. Reiner Franke, 1999. "Technical Change and a Falling Wage Share if Profits are Maintained," Metroeconomica, Wiley Blackwell, vol. 50(1), pages 35-53, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wage-profit relation; prices of production; wage dispersion; bargaining; technical change;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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