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Cyclical Behavior of the Labor Share

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  • Howard J. Sherman

    (Department of Economics, University of California, Riverside, California 92521)

Abstract

For 1970-1982, the wage/profit ratio is strongly counter-cyclical; it's movements are determined mainly by output demanded (or capacity utilization) and only secondarily by unemployment with a long time lag. These data weakened the case for the reserve army theory and strengthen the case for theories of deficient demand (but data for 1950-1970 lean more the other way).

Suggested Citation

  • Howard J. Sherman, 1990. "Cyclical Behavior of the Labor Share," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(2-3), pages 92-112, June.
    • Handle: RePEc:sae:reorpe:v:22:y:1990:i:2-3:p:92-112
    DOI: 10.1177/048661349002200205
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    References listed on IDEAS

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    1. Wesley Clair Mitchell, 1951. "What Happens during Business Cycles: A Progress Report," NBER Books, National Bureau of Economic Research, Inc, number mitc51-1.
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    5. Charles Schultze, 1964. "Short-Run Movements of Income Shares," NBER Chapters, in: The Behavior of Income Shares: Selected Theoretical and Empirical Issues, pages 143-188, National Bureau of Economic Research, Inc.
    6. Rebitzer, James B, 1987. "Unemployment, Long-term Employment Relations, and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 627-635, November.
    7. Geary, Patrick T & Kennan, John, 1982. "The Employment-Real Wage Relationship: An International Study," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 854-871, August.
    8. Samuel Bowles & Herbert Gintis, 1982. "The Crisis of Liberal Democratic Capitalism: The Case of the United States," Politics & Society, , vol. 11(1), pages 51-93, March.
    9. Bils, Mark, 1987. "The Cyclical Behavior of Marginal Cost and Price," American Economic Review, American Economic Association, vol. 77(5), pages 838-855, December.
    10. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70(6), pages 538-538.
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