Webbläsaren som du använder stöds inte av denna webbplats. Alla versioner av Internet Explorer stöds inte längre, av oss eller Microsoft (läs mer här: * https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Var god och använd en modern webbläsare för att ta del av denna webbplats, som t.ex. nyaste versioner av Edge, Chrome, Firefox eller Safari osv.

Erik Bengtsson . Foto

Erik Bengtsson

Universitetslektor

Erik Bengtsson . Foto

Wages, income distribution and economic growth in Scandinavia

Författare

  • Erik Bengtsson
  • Engelbert Stockhammer

Summary, in English

Wage restraint plays an important role in the conventional economic history explanation of the post-war golden growth experience of industrialized economies. Conversely, wage increases harming investment and increasing unemployment have been proffered as explanations for some of the high unemployment during the interwar period. This article argues that the conventional account implicitly only considers effects of wage growth on investment and not the advantageous effects on consumption. Thus, the evaluation of the effects on GDP growth is lop-sided. We employ a Post-Keynesian model to estimate effects of growth in the wage share of national income on consumption, investment, exports and imports separately, and weigh the effects together to estimate total effects on GDP growth, in Scandinavia (Denmark, Norway and Sweden) 1900–2010. Furthermore, we estimate the positive effects of wage pressure on productivity, showing it to be significant and positive in all three countries. We show that the postwar wage push had small positive effects on GDP growth in Denmark and Sweden, and a small negative effect in Norway. Thus, wage restraint is not a valid explanation for the postwar growth miracle. We propose a more comprehensive macroeconomic framework for understanding the implications of labour-capital distribution.

Avdelning/ar

  • Ekonomisk-historiska institutionen

Publiceringsår

2018

Språk

Engelska

Publikation/Tidskrift/Serie

Lund Papers in Economic History. General Issues

Issue

2018:179

Dokumenttyp

Working paper

Ämne

  • Economic History

Nyckelord

  • functional income distribution
  • inequality
  • consumption
  • investment capabilities
  • Scandinavia
  • Bhaduri-Marglin model
  • E12
  • N1
  • N14

Aktiv

Published