abstract: 'This paper presents the empirical evidence about the impact of the

  simultaneous race to the bottom in labour''s share on growth after taking

  global interactions into account based on the post-Kaleckian theoretical

  framework developed by Bhaduri and Marglin (1990). The world economy and

  large economic areas are likely to be wage-led; and parameter shifts in

  different periods are unlikely to make a difference in this finding. The

  effects that can come from a wage-led recovery on growth and hence

  employment are positive, however they are also modest in magnitude. We

  then present an alternative scenario based on a policy mix of wage

  increases and public investment. A coordinated mix of polices in the G20

  targeted to increase the share of wages in GDP by 1-5 per cent in the

  next 5 years and to raise public investment in social and physical

  infrastructure by 1 per cent of GDP in each country can create up to

  5.84 per cent more growth in G20 countries. The final section addresses

  the political aspects and barriers to a wage-led recovery.'
affiliation: 'Onaran, O (Corresponding Author), Univ Greenwich, London, England.

  Onaran, Ozlem, Univ Greenwich, London, England.'
author: Onaran, Ozlem
author_list:
- family: Onaran
  given: Ozlem
da: '2023-09-28'
doi: 10.4337/roke.2016.04.07
eissn: 2049-5331
files: []
issn: 2049-5323
journal: REVIEW OF KEYNESIAN ECONOMICS
keywords: wage share; wage-led growth; globalization; public investment
keywords-plus: 'FUNCTIONAL INCOME-DISTRIBUTION; AGGREGATE DEMAND; ECONOMIC-GROWTH;

  SOUTH-KOREA; INVESTMENT; FINANCIALISATION; ACCUMULATION; STRATEGIES;

  COUNTRIES; MODEL'
language: English
month: WIN
number: '4'
number-of-cited-references: '49'
orcid-numbers: Onaran, Ozlem/0000-0002-6345-9922
pages: 458-474
papis_id: 6634c3e1202a12c3e252ecd49d457254
ref: Onaran2016wageprofitled
times-cited: '11'
title: 'Wage- versus profit-led growth in the context of globalization and public
  spending: the political aspects of wage-led recovery'
type: Article
unique-id: WOS:000386865100007
usage-count-last-180-days: '0'
usage-count-since-2013: '11'
volume: '4'
web-of-science-categories: Economics
year: '2016'