IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v13y1999i3p333-351.html
   My bibliography  Save this article

Sectoral Patterns of Distribution in Slowly Growing Economies: The case of nine OECD countries in the 1980s and 1990s

Author

Listed:
  • Pascal Petit

Abstract

Slow productivity growth has put pressure on the distribution of income between wages and profits in ways that are not amenable to a US versus Europe dichotomy but vary between sectors (especially between manufacturing and service activities) as well as among countries. Over the 1980s and the 1990s, wage flexibility and profit margin flexibility in service sectors-characterised, respectively, by high shares of total employment and high shares of total profits-outlined three growth patterns: countries adjusting to slow productivity growth by means of considerable flexibility in relative wages in services (as in the US, the UK and Germany); adjustment through flexibility in relative profit margins (as in France, Canada and Sweden); and finally, an absence of change in the sectoral structure of distribution (as in Japan, Italy and Belgium). These patterns may be associated with either changes in wage and profit rates or structural adjustments (such as changes in the share of part time jobs, or changes in the composition of the capital stock). They are shown to be an important influence on the prospect of a resumption of high productivity growth.

Suggested Citation

  • Pascal Petit, 1999. "Sectoral Patterns of Distribution in Slowly Growing Economies: The case of nine OECD countries in the 1980s and 1990s," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(3), pages 333-351.
  • Handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:333-351
    DOI: 10.1080/026921799101580
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/026921799101580
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gottschalk, Peter, 1993. "Changes in Inequality of Family Income in Seven Industrialized Countries," American Economic Review, American Economic Association, vol. 83(2), pages 136-142, May.
    2. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
    3. Zvi Griliches, 1998. "Productivity, R&D, and the Data Constraint," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 347-374 National Bureau of Economic Research, Inc.
    4. Martin Neil Baily & Robert J. Gordon, 1988. "The Productivity Slowdown, Measurement Issues, and the Explosion of Computer Power," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 347-432.
    5. Bauer, John & Mason, Andrew, 1992. "The Distribution of Income and Wealth in Japan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(4), pages 403-428, December.
    6. David, P.A., 1989. "Computer And Dynamo: The Modern Productivity Paradox In A Not-Too Distant Mirror," The Warwick Economics Research Paper Series (TWERPS) 339, University of Warwick, Department of Economics.
    7. Michael Förster, 1994. "Measurement of Low Incomes and Poverty in A Perspective of International Comparisons," OECD Labour Market and Social Policy Occasional Papers 14, OECD Publishing.
    8. Eli Berman & John Bound & Zvi Griliches, 1994. "Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 367-397.
    9. Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 806-817, September.
    10. Stephen D. Oliner & Daniel E. Sichel, 1994. "Computers and Output Growth Revisited: How Big Is the Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 273-334.
    11. Glyn, Andrew, 1995. "Unemployment and inequality," Discussion Papers, Research Unit: Economic Change and Employment FS I 95-303, Social Science Research Center Berlin (WZB).
    12. Harrison, Bennett & Bluestone, Barry, 1990. "Wage Polarisation in the U.S. and the 'Flexibility' Debate," Cambridge Journal of Economics, Oxford University Press, vol. 14(3), pages 351-373, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:13:y:1999:i:3:p:333-351. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.