Profit shares, investment and output capacity
The main purpose of this paper is to test the hypothesis that, especially in Europe, excessive real wage growth and falling profit shares have been instrumental in reducing investment growth and the employment potential of the capital stock. We also consider the policy implication that a sustainable rise in employment may not be feasible unless higher output growth is led by investment and that this in turn requires continued or even further wage restraint.
|Date of creation:||Jul 1987|
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