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Distribution and growth in demand and productivity in Switzerland (1950-2010)

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Abstract

I investigate whether demand growth and productivity growth in Switzerland have benefitted from the wage moderation that set in at the beginning of the 1990s in this country. The results suggest that the Swiss demand regime is profit-led while the productivity regime is wage-led. This means on the one hand that wage moderation has added almost one percentage point to GDP growth after 1990. On the other hand, it has also contributed to the drop in productivity growth. The latter effect, however, is weak.

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Bibliographic Info

Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 12-323.

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Length: 17 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:kof:wpskof:12-323

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Keywords: Distribution; demand growth; productivity growth; Bhaduri-Marglin model; Switzerland;

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Cited by:
  1. Jochen Hartwig, 2014. "Testing the Bhaduri-Marglin Model with OECD Panel Data," KOF Working papers 14-349, KOF Swiss Economic Institute, ETH Zurich.
  2. Jan Behringer & Till van Treeck, 2013. "Income distribution and current account: A sectoral perspective," IMK Working Paper 125-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
  3. Christian Belabed & Thomas Theobald & Till van Treeck, 2013. "Income Distribution and Current Account Imbalances," INET Research Notes 36, Institute for New Economic Thinking (INET).

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