Profit sharing and its effect on income distribution and output: a Kaleckian approach

Abstract

This paper investigates the effect of profit sharing on the economy by using a Kaleckian model. Unlike exiting studies, we endogenize the profit share. Our analysis shows that if the size of the productivity-enhancing effect of profit sharing is small, profit sharing decreases the equilibrium rate of capacity utilization whereas if the size is large, profit sharing increases the equilibrium rate of capacity utilization.

Differences in wage-determination systems between regular and non-regular employment in a Kaleckian model*

“…However, in reality, there is a wage gap between these two types of labor, and it is this gap that we consider in our model. Based on the above observations, Lavoie (2009), Sasaki et al (2013), and Sasaki (2015) present Kaleckian models that consider the wage gap between two types of labor. Lavoie (2009) assumes that the wages of fixed labor are higher than those of variable labor.…”

“…Lavoie (2009) assumes that the wages of fixed labor are higher than those of variable labor. Sasaki et al (2013) and Sasaki (2015) each interpret fixed and variable labor as regular and non-regular employment, respectively, and assume that the real wage rate of regular workers is higher than that of non-regular workers. However, in these models, only the wage-determination mechanism of regular workers is specified, and the wages of non-regular workers are determined by multiplying the real wage rate of regular workers by an exogenous parameter.…”

Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets

“…SeeLavoie (2009), Palley (2014,Tavani and Vasudevan (2014),Dutt, Charles, and Lang (2015), andPalley (2016) Sasaki, Matsuyama, and Sako (2013). andSasaki (2016) use another distinction of workers: Regular and non-regular.4 Tobin (1993) insists that involuntary unemployment is caused by demand constraints rather than nominal price rigidity.5 AfterClower (1965) analyzed the rationed supply of goods, Grossman (1971, 1976),Bénassy (1975), Malinvaud (1977, andMuellbauer and Portes (1978) presented the general disequilibrium model Ito (1985),Bénassy (1986),Böhm (1978). andHeijdra and van der Ploeg (2002 Chapter 5) introduce studies of this approach.…”