Labour markets in a Post-Keynesian growth model: the effects of endogenous productivity growth and working-time reduction*
  • 1 Austrian Institute of Economic Research (WIFO), Vienna and Vienna University of Economics and Business (WU), Austria
  • | 2 Vienna University of Economics and Business (WU), Austria

The paper studies endogenous employment and distribution dynamics in a Post-Keynesian growth model of the Kalecki–Steindl tradition. Productivity adjustments stabilise employment and the labour share in the long run: technological change allows firms to replenish the reserve army of workers in a struggle over income shares and thereby keeps wage demands in check. Labour market dynamics follow from separate wage and price curves. The authors discuss stability conditions and the equilibrium dynamics and investigate how legal working time and its reduction affect this equilibrium.

Contributor Notes

We thank two anonymous reviewers for their comments, which helped to improve the paper substantially. All remaining errors are of course ours.

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