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Wage-led Growth: Concept, Theories and Policies

  • Marc Lavoie
  • Engelbert Stockhammer
Part of the Advances in Labour Studies book series (AILS)

Abstract

The subprime financial crisis that started in 2007 and which became the global financial crisis challenges economists and policy-makers to reconsider the theories and policies that had gradually been accepted as conventional wisdom over the last thirty years. It is widely recognized that the global financial crisis has called into question the efficiency and stability of unregulated financial markets. This chapter argues that it has also demonstrated the limitations and even falsehood of the claim that wage moderation, accompanied by more flexible labour markets as well as labour institutions and laws more favourable to employers, will ultimately make for a more stable economy and a more productive and dynamic economic system.

Keywords

Income Distribution Productivity Growth Real Wage Aggregate Demand Profit Share 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Labour Organization 2013

Authors and Affiliations

  • Marc Lavoie
  • Engelbert Stockhammer

There are no affiliations available

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