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What's Behind the Recent Rise in Profitability?

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  • Edward N. Wolff

    (New York Univ & Jerome Levy Econ Inst)

Abstract

Profitability in the United States has been rising since the early 1980s and by 1997 was at its highest level since its postwar peak in the mid 1960s, and the profit share, by one definition, was at its highest point. In this paper I examine the role of the change in the profit share and capital intensity, as well as structural change, on movements in the rate of profit between 1947 and 1997. Its recent recovery is traced to a rise in the profit share in national income, a slowdown in capital-labor growth on the industry level, and employment shifts to relatively labor-intensive industries.

Suggested Citation

  • Edward N. Wolff, 2000. "What's Behind the Recent Rise in Profitability?," Macroeconomics 0004044, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0004044
    Note: Type of Document - Adobe Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 37; figures: included
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    Cited by:

    1. Jamee K. Moudud & Ajit Zacharias, "undated". "Whither the Welfare State? The Macroeconomics of Social Policy," Economics Public Policy Brief Archive ppb_61, Levy Economics Institute.

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