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Salarios, demanda agregada y desempeño económico en Colombia: un debate no resuelto
[Wages, aggregate demand and economic performance in Colombia: an unsolved debate]

Author

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  • Loaiza Quintero, Osmar Leandro
  • Sierra Ríos, Ana Milena

Abstract

According to neoclassical economic theory, there is a negative relationship between real wages, and the level of output and employment. Therefore, neoclassical theory tends to favor policy measures that seek to diminish real wages and deregulate the labor market, explaining that poor economic performance and high unemployment is the result of sticky real wages. However, there are theories that hold an opposite point of view, which shows the issue is far from settled. One of them is explained briefly in this paper using a simple kaleckian model. Using de Bhaduri y Marglin (1990) macro-model, in which salaries may be related both negatively or positively to the level of output, empirical estimations are made to find what´s the nature of the relation between this two variables in Colombia. It is found that there is a positive relationship between the internal sector of the economy and the level of real wages. However, exports are negatively affected by salaries. Results seem to show that the total effect of real wages on output is negative.

Suggested Citation

  • Loaiza Quintero, Osmar Leandro & Sierra Ríos, Ana Milena, 2010. "Salarios, demanda agregada y desempeño económico en Colombia: un debate no resuelto [Wages, aggregate demand and economic performance in Colombia: an unsolved debate]," MPRA Paper 42669, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42669
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    References listed on IDEAS

    as
    1. Eckhard Hein & Artur Tarassow, 2010. "Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(4), pages 727-754.
    2. Mark Setterfield, 2003. "Supply and Demand in the Theory of Long-run Growth: Introduction to a symposium on demand-led growth," Review of Political Economy, Taylor & Francis Journals, vol. 15(1), pages 23-32.
    3. Engelbert Stockhammer & Özlem Onaran & Stefan Ederer, 2009. "Functional income distribution and aggregate demand in the Euro area," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(1), pages 139-159, January.
    4. Eckhard Hein & Lena Vogel, 2008. "Distribution and growth reconsidered: empirical results for six OECD countries," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(3), pages 479-511, May.
    5. Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 14(4), pages 375-393, December.
    6. Philip Arestis, 1992. "The Post-Keynesian Approach to Economics," Books, Edward Elgar Publishing, number 16.
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    Cited by:

    1. Osmar Leandro Loaiza Quintero & Alexander Tobón Arias & Guillermo David Hincapié Vélez, 2017. "The impact of the functional distribution of income on gross domestic product: Colombia, 1970-2011," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 86, pages 63-104, Enero - J.
    2. Loaiza Quintero, Osmar Leandro & Tobón Arias, Alexander & Hincapié Vélez, Guillermo David, 2016. "Impacto de la distribución funcional del ingreso sobre el producto interno bruto de Colombia, 1970-2011," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 86, pages 63-104, December.

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    More about this item

    Keywords

    Aggregate demand; job market; unemployment; post-keynesian economics;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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