Technology, profits and wages

Arbeitspapier

Building on a Post-Keynesian theoretical framework, integrated with an analysis of technology, this article investigates the structural determinants of income distribution. We develop a simultaneous model on wage and profit dynamics identifying as key determinants productivity growth, capital-labour conflict, the relevance of trade unions and different strategies of technological change and offshoring. We perform an industry-level analysis on 38 manufacturing and service sectors for six major European countries from 1994 to 2014. Wage and profit dynamics is shown to be rooted in structural change, productivity growth and capital-labour conflict, with profits driven by product innovation and offshoring, and wages rising faster where new products are relevant and trade unions have a greater role.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: LEM Working Paper Series ; No. 2019/35

Classification and Topics

• Classification: Wirtschaft ; Economic Integration ; Wage Level and Structure; Wage Differentials ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: Income distribution ; innovation ; offshoring ; Europe ; industries

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Coveri, Andrea ; Pianta, Mario
• Event: Veröffentlichung
• (who): Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
• (where): Pisa
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/228133
• Last update: 10.03.2025, 11:41 AM CET