Functional distribution and wage inequality in recent Kaleckian growth models

Arbeitspapier

This contribution provides a review of recent considerations of wage inequality in Kaleckian models of distribution and growth. On the one hand, we address modelling approaches in which a distinction is made between managers and workers, where the salaries of the former are treated as overhead costs in a target-return pricing framework. Distribution between profits and wages, and between managers and direct labour, will thus depend on the level of economic activity, in particular in a short-run cyclical perspective. On the other hand, we review more recent Kaleckian models, which explicitly introduce wage inequality, but maintain the simple mark-up pricing approach, thus abstracting from explicit consideration of overhead costs. Explicitly or implicitly, these models rather adhere to a medium-run perspective. Finally, we provide a simple neo-Kaleckian distribution and growth model with wage inequality, which allows for different medium-run demand regimes in a stylized way.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 110/2018

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Aggregate Factor Income Distribution ; Personal Income, Wealth, and Their Distributions
• Subject: functional income distribution ; wage inequality ; distribution ; growth ; Kaleckian models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hein, Eckhard ; Prante, Franz
• Event: Veröffentlichung
• (who): Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
• (where): Berlin
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/187425
• Last update: 10.03.2025, 11:43 AM CET