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Wages, Employment, Distribution and Growth - International Perspectives

  • Eckhard Hein

    (Berlin School of Economics and Law, Germany)

  • Arne Heise

    (University of Hamburg, Germany)

  • Achim Truger

    (Macroeconomic Policy Institute (IMK) in the Hans Boeckler Foundation, Germany)

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This volume challenges the view that unemployment is exclusively determined by structural characteristics of the labour market and the social benefit system. Macroeconomic policies and investment in capital stock are included into the analysis and it is shown that they have a major role to play. Wage setting in the labour market has no direct impact on employment but nominal wages set in this market affect the price level. Following mainstream recommendations with respect to labour market reforms in an environment of low growth and serious effective demand problems, may contribute to deflationary risks. Unemployment and 'structural reforms' also cause falling labour income shares and more unequal personal income distribution. These developments contribute to slow growth and rising unemployment. This is shown in applying growth models, which rely on the principle of effective demand and which also incorporate the effects of distribution struggle.

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This book is provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series Conference proceedings of the Research Network Macroeconomics and Macroeconomic Policies (FMM) with number 8a-2006 and published in 2006.
ISBN: ISBN 9781403949622
Handle: RePEc:imk:fmmcps:8a-2006
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