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Profit sharing and its effect on income distribution and output: a Kaleckian approach

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  • Hiroaki Sasaki

Abstract

This study investigates how profit sharing influences the economy by using a Kaleckian model. Unlike existing research, I endogenise the profit share. The analysis shows that profit sharing decreases or increases the equilibrium capacity utilisation rate depending on whether the productivity-enhancing effect of profit sharing is weak or strong. Moreover, the presented numerical simulations show that the profit-sharing effects on income distributions differ according to the relative strength of the productivity-enhancing effect of profit sharing.

Suggested Citation

  • Hiroaki Sasaki, 2016. "Profit sharing and its effect on income distribution and output: a Kaleckian approach," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(2), pages 469-489.
    • Handle: RePEc:oup:cambje:v:40:y:2016:i:2:p:469-489.
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    File URL: http://hdl.handle.net/10.1093/cje/beu087
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    Cited by:

    1. Sasaki, Hiroaki & Mizutani, Aya, 2025. "Do the economic policies of Japan’s “New form of capitalism” create a virtuous cycle of growth and distribution?," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 501-512.
    2. Parui, Pintu, 2021. "The Macroeconomic Effects of Financialization and the Wage Gap between Blue and White Collar Workers," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 416-443.
    3. Hein, Eckhard, 2025. "Kaleckian economics after Kalecki: A survey," IPE Working Papers 257/2025, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    4. Shogo Ogawa, 2019. "Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets," Metroeconomica, Wiley Blackwell, vol. 70(3), pages 525-550, July.
    5. Sasaki, Hiroaki & Asada, Yasukuni, 2020. "Quantifying Goodwin Growth Cycles with Minimum Wage Shares," MPRA Paper 99926, University Library of Munich, Germany.
    6. Sasaki, Hiroaki, 2018. "タイトル：カレツキアン・モデルの基本骨格――短期モデルと長期モデル―― [The Basic Framework of the Kaleckian Model of Growth and Distribution: Short-run Model and Long-run Model]," MPRA Paper 88986, University Library of Munich, Germany.
    7. Kenshiro Ninomiya, 2023. "Debt burden, investment, and profit-sharing," Evolutionary and Institutional Economics Review, Springer, vol. 20(2), pages 287-306, September.
    8. Ryunosuke Sonoda & Hiroaki Sasaki, 2019. "Differences in wage-determination systems between regular and non-regular employment in a Kaleckian model," Review of Keynesian Economics, Edward Elgar Publishing, vol. 7(3), pages 341-360, July.
    9. Cajas-Guijarro, John & Cajas-Guijarro, Daniel, 2025. "Resonant and non-resonant Double Hopf bifurcation in a 4D Goodwin model with Wage inequality," MPRA Paper 126746, University Library of Munich, Germany.
    10. Sasaki, Hiroaki & Asada, Yasukuni & Sonoda, Ryunosuke, 2024. "Effects of Minimum Wage Share and Wage Gap Reduction on Cyclical Fluctuation: A Goodwin Approach," MPRA Paper 121695, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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