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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
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    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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