Do Rising Real Wages Increase the Rate of Labor‐saving Technical Change? Some Econometric Evidence

Marquetti, Adalmir

doi:10.1111/j.1467-999x.2004.00201.x

Cited by 56 publications

(39 citation statements)

References 15 publications

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“…Wage-push factors for productivity growth are confirmed by Marquetti (2004). He finds cointegration between real wages and labour productivity in the USA from 1869-1999.…”

Section: Aggregate Demand Distribution and Productivity Growthmentioning

confidence: 90%

Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model

Hein¹,

Tarassow

2009

Cambridge Journal of Economics

110

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractEmpirical research based on the Bhaduri/Marglin-variant of the Kaleckian model has recently shown that aggregate demand in many medium-sized and large open economies tends to be wage-led in the medium to long run, even in a period of increasing globalisation. In this paper we extend this type of analysis and integrate the effects on productivity growth, theoretically and empirically. Productivity growth is introduced into the theoretical model making use of the Verdoorn effect or of Kaldor's technical progress function and hence of a positive relationship between GDP or capital stock growth and productivity growth. Further on, a costpush or Marx/Hicks-effect and hence a positive impact of real wage growth or the wage share on productivity growth is taken into account. In the empirical part we estimate productivity growth equations for six countries introducing these two effects. Finally, economic policy conclusions are drawn.JEL code: E12, E21, E22, E25, O41

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“…Wage-push factors for productivity growth are confirmed by Marquetti (2004). He finds cointegration between real wages and labour productivity in the USA from 1869-1999.…”

Section: Aggregate Demand Distribution and Productivity Growthmentioning

confidence: 90%

Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model

Hein¹,

Tarassow

2009

Cambridge Journal of Economics

110

View full text Add to dashboard Cite

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“…Finally, using data for the United States covering the 1869-1999 period, Marquetti (2004) estimates an error-correction model and shows that labor productivity responds to autonomous increases of the average real wage in order to maintain a stable, long-run relationship between the real wage and labor productivity.…”

Section: Motivation and Related Literaturementioning

confidence: 99%

“…The empirical strategy in this paper is closest to that of Marquetti (2004). I first test for the existence of a long-run relationship between the product wage and labor productivity that is consistent with a stationary wage share; I then examine the direction of long-run causality between the two variables by means of an error correction model.…”

Section: Data and Empirical Strategymentioning

confidence: 99%

Real wages and labor-saving technical change: evidence from a panel of manufacturing industries in mature and labor-surplus economies

Souza¹

2016

International Review of Applied Economics

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This paper uses panel cointegration and error correction models to unveil the direction of long-run causality between the real product wage and labor productivity at the industry level. I use two datasets of manufacturing industries: the EU-Klems dataset covering 11 industries in 19 developed economies, and the Unido Industrial Statistics Database covering 22 industries in 30 developed and developing economies. In both datasets, I find evidence of cointegration between the two variables, as well as evidence of two-way, long-run Granger causality. These findings are consistent with theories of directed technical change, which claim that a rise in labor costs sparks the adoption of labor-saving innovations. They are also consistent with distributive theories whereby real wages keep apace of labor productivity growth, giving rise to long-run stability in functional distribution.

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“…29 Evidence of a positive relationship between wages and investment can be found in a variety of contexts. See, for example, Seguino (1999Seguino ( -2000 on South Korea, and Marquetti (2004) for a variety of industrialized countries. 30 If unit labor costs stay the same, of course, then this is not a case of wage-led growth in the classic demand-driven sense.…”

Section: Notesmentioning

confidence: 99%

Gender equity and globalization: macroeconomic policy for developing countries

Seguino

Grown

2006

J of Intl Development

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This paper reviews the evidence of gender effects of globalization in developing economies. It then outlines a set of macroeconomic and trade policies to promote gender equity in the distribution of resources. The evidence suggests that while liberalization has expanded women's access to employment, the long-term goal of transforming gender inequalities remains unmet and appears unattainable without regulation of capital, and a reorientation and expansion of the state's role in funding public goods and providing s a social safety net. This paper sets forth some general principles that can produce greater gender equality, premised on shifting economies from profit-led, export-oriented to wage-led, full-employment economies. The framework is Kaleckian in its focus on the relationship between the gender distribution of income and macroeconomic outcomes.

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Do Rising Real Wages Increase the Rate of Labor‐saving Technical Change? Some Econometric Evidence

Cited by 56 publications

References 15 publications

Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model

Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model

Real wages and labor-saving technical change: evidence from a panel of manufacturing industries in mature and labor-surplus economies

Gender equity and globalization: macroeconomic policy for developing countries

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