ALBERT — All Library Books, journals and Electronic Records Telegrafenberg

Hits per page

hit 1 - 1 | 1 hit

Select All Export

Electronic Resource

Wage Hikes as Supply and Demand Shock (2003)

Jerger, Jürgen ; Michaelis, Jochen

Oxford, UK and Boston, USA : Blackwell Publishing Ltd

Metroeconomica 54 (2003), S. 0

add to mindlist on the mindlist

Details

ISSN: 1467-999X

Source: Blackwell Publishing Journal Backfiles 1879-2005

Topics: Economics

Notes: Wage hikes affect production costs and hence are usually analysed as supply shocks. There is a long-standing debate, however, about demand effects of wage variations. In this paper, we bring together these two arguments in a Kaldorian model with group-specific saving rates and a production technology that allows for redistribution between workers and entrepreneurs following a wage hike. We thereby pinpoint the conditions under which (a) wage variations affect aggregate demand and (b) the positive demand effects of wage hikes may even overcompensate the negative supply effects on aggregate employment (‘purchasing power argument’). We conclude by noting that, whereas demand effects are very likely to occur, the conditions under which the purchasing power argument does indeed hold are very unrealistic.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1111/1467-999X.00174

	Location	Call Number	Expected	Availability

Others were also interested in ...

Paper (German National Licenses)

Fulltext

hit 1 - 1 | 1 hit