scholarly journals Retrospectives: Real and Money Wage Rates

1998 ◽  
Vol 12 (2) ◽  
pp. 223-234 ◽  
Author(s):  
John T Dunlop
Keyword(s):  
General Theory ◽  
Real Wage ◽  
Contemporary Literature ◽  
Real Wages ◽  
John Maynard Keynes ◽  
Common View ◽  
Money Wage ◽  
Macroeconomic Models ◽  
Wage Rates ◽  
Money Illusion

In the General Theory, John Maynard Keynes held money and real wage rates move in opposite directions. In expansion, prices increase faster because of increasing costs and a rise in the proportion of product going to profits. Neoclassical economists held similarly. Money illusion of workers supported their common view. The author's 1938 article rather showed a procyclical pattern, significant to macroeconomic models of the economy. Contemporary literature with new elements of compensation and new measures of wages supports a slightly procyclical relationship. Increased output and employment in expansion do not require lower real wages.

Composition and Aggregate Real Wage Growth

2017 ◽  
Vol 107 (5) ◽  
pp. 349-352 ◽  
Author(s):  
Mary C. Daly ◽  
Bart Hobijn
Keyword(s):  
Real Wage ◽  
Population Survey ◽  
Wage Gap ◽  
Relative Wage ◽  
Composition Effect ◽  
Real Wages ◽  
Current Population Survey Data ◽  
Macroeconomic Models ◽  
The Business Cycle ◽  
The Unemployed

Aggregate real wages exhibit less procyclicality than most macroeconomic models predict. We use 35 years of Current Population Survey data to confirm that the puzzling behavior of wages largely owes to changes in the composition of the employed over the business cycle. This composition effect relates to changes in both the number and the relative wage levels of those entering and exiting. The changing gap in wages of entrants and exiters is especially important for the unemployed. A large part of this wage gap is due to differences in average Mincer residuals between entrants and exiters.

The Economics of wages and wages policy in the depression and recovery period: distinctive elements in the New Zealand debate, 1931- 1936

1970 ◽  
Vol 15 (1) ◽  
Author(s):  
A. M. Endres
Keyword(s):  
New Zealand ◽  
Real Wage ◽  
Labour Productivity ◽  
Recovery Period ◽  
Prima Facie ◽  
Currency Devaluation ◽  
Money Wage ◽  
Distinctive Features ◽  
Compulsory Arbitration ◽  
Wage Cuts

This article discusses distinctive features of the New Zealand debate on the economics of wages and wages policy from 1931 up to the restoration of compulsory arbitration in 1936. Local economic orthodoxy proffered advice which, consistent with Keynes (1936), turned on the need for a general real wage reduction effected mostly through currency devaluation, rather than through further money wage cuts. Dissenters were critical of currency devaluation; they stressed excessively generous unemployment relief, real wage 'overhang' and structural real wage distorttons. Tentative estimates of both aggregate real product wage and labour productivity changes demonstrate, prima facie, that at least one strand in the dissenting argument was defensible.

The Macroeconomic thought of Nicholas Barbon

2007 ◽  
Vol 29 (1) ◽  
pp. 101-116
Author(s):  
James H. Ullmer
Keyword(s):  
General Theory ◽  
Scientific Inquiry ◽  
Economic Thought ◽  
John Maynard Keynes ◽  
Major Defect

Nicholas Barbon (1640–1698) is little appreciated by most historians of economic thought. He is sporadically mentioned in a few writings—probably the most well-known being the favorable reference to him made by John Maynard Keynes (1883–1946) in The General Theory of Employment, Interest, and Money (Keynes 1936, p. 359). The fullest treatment of Barbon's economic ideas is contained in The Origin of Scientific Economics: English Economic Thought 1660–1776 by William Louis Letwin (Letwin 1963, pp. 48–75). Letwin considers a major defect of Barbon's first purely scientific inquiry into economics, A Discourse of Trade (Barbon 1690), and by implication, his other economic writings, to be “the logical incoherence of its parts” (Letwin 1963, p. 57). This criticism is not surprising in light of the pre-paradigm period in which Barbon was writing.

An Analysis of Growth and Association between Labour Productivity and Wages in Indian Textile Industry

2018 ◽  
Vol 43 (1-2) ◽  
pp. 78-87 ◽  
Author(s):  
Vanita Ahlawat ◽  
Renu
Keyword(s):  
Real Wage ◽  
Wage Rate ◽  
Textile Industry ◽  
Labour Productivity ◽  
Value Added ◽  
Gender Disparity ◽  
Wage Determination ◽  
Textile Manufacturing ◽  
Wage Rates ◽  
The Impact

India is one of the largest textile producers in the world. Textile industry is huge employment-providing industry after agriculture in India. The present article is an attempt to analyse first, the growth and composition of employees engaged in textile industry in India. Second, to find the growth and relation between employments, man-days employed, wages and net value added (NVA) by textile industry in India. And lastly, the impact of labour productivity in wage determination is also analysed. The results suggested that there is huge gender disparity in employment, that is, women are very few in comparison to men workers. Overall employment in textile has an increasing trend among both categories of textile industry. Further, spinning, weaving and finishing of textile manufacturing is growing faster than manufacturing of other textiles. Employment in textile industry has a positive and significant correlation with real wage rates in both categories of industries. This indicates that increase in real wage rate causes enhancement in employment in textile manufacturing. And further results suggest that labour productivity is a significant determinant of wage rate of textile employees.

The Employment –Wage Relationship Was Keynes right after all?

2008 ◽  
Vol 6 (1) ◽  
Author(s):  
Nicholas Apergis ◽  
Keyword(s):  
Real Wage ◽  
Panel Cointegration ◽  
Oecd Countries ◽  
Statistical Evidence ◽  
Real Wages ◽  
Long Run ◽  
Short Run

This paper investigates the existence and direction of a relationship between real wages and employment. Using a panel from ten different OECD countries, from 1950 to 2005, it applies panel cointegration and causality methodology. This study finds statistical evidence for a long run relationship between these two variables. However, it firmly rejects the hypothesis that wages cause employment in the short-run. Thus the results support Keynes’s view namely, real wages fall because employment increases, presumably via an increase in demand. The results imply that real wage reduction is not sufficient to induce an expansion of output and employment.

John Maynard Keynes

2017 ◽  
Author(s):  
John Kenneth Galbraith
Keyword(s):  
General Theory ◽  
Government Spending ◽  
Full Employment ◽  
Government Expenditures ◽  
John Maynard Keynes ◽  
Winston Churchill ◽  
Modern Economy ◽  
The Government

This chapter examines the economic ideas of John Maynard Keynes. According to Keynes, the modern economy does not necessarily find its equilibrium at full employment; it can find it with unemployment. This is the underemployment equilibrium, in which Say's Law no longer holds; there can be a shortage of demand. The government can and should take steps to overcome this shortage. The chapter discusses in more detail the underemployment equilibrium, the repeal of Say's Law, the call for government spending uncovered by revenues to sustain demand—all of which made up the so-called the Keynesian Revolution. In particular, it considers Keynes's central prescription that there should be government expenditures financed by borrowing to sustain demand and employment. It also analyzes Keynes's criticism of Winston Churchill, his A Treatise on Money (1930), and the economic discussion that followed the publication of The General Theory of Employment Interest and Money (1936).

‘No One in Our Age was Cleverer …’

2019 ◽  
pp. 99-136
Author(s):  
Alan Bollard
Keyword(s):  
Soviet Union ◽  
General Theory ◽  
John Maynard Keynes ◽  
Bretton Woods ◽  
The Soviet Union ◽  
Set Up ◽  
The Imf

As troops massed on the border, John Maynard Keynes had to hastily cut short a holiday in France. A government advisor, academic, journalist, and polymath, he spent the next few years working on pioneering and highly innovative economic ideas: how to pay for the war, how to apply his ground-breaking ‘General Theory’ to policy, how to avoid repeating the mistakes of Versailles, and how to set up an international clearing exchange at Bretton Woods that would eventually become the IMF. As Germany turned on the Soviet Union, Keynes became very worried about his Russian in-laws caught up in the terrible siege of Leningrad.

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