Wage growth has become increasingly detached from real variables such as the unemployment rate or economic growth. In this chapter, it is shown that a consistent factor driving this development can be found in labour market dualities. Concretely, the author demonstrates that labour market dualities _ more precisely, the incidence of temporary contracts in an economy _ dampens wage growth. This is not a novel development. However, the dampening impact of wage growth has considerably increased for any given level of temporary contracts in an economy since the global financial crisis, arguably being linked to an increased fear of social decline triggered by the massiveness of the economic downturn. The major focus of this chapter is on Central, Eastern and Southeastern European (CESEE) economies, although the author shows that the effect also exists within the context of a broader sample of European Union economies.
Engelbert Stockhammer and Paul Ramskogler
Post-Keynesian Economics (PKE) is at the crossroads. Post-Keynesians (PKs) have become effectively marginalized; the academic climate at universities has become more hostile to survival and the mainstream has become more diverse internally. Moreover, a heterodox camp of diverse groups of non-mainstream economists is forming. The debate on the future of PKE has so far focussed on the relation to the mainstream. This paper argues that this is, in fact, not an important issue for the future of PKE. The debate has so far strangely overlooked the dialectics between academic hegemony and economic (and social) stability. In times of crisis the dominant economic paradigm becomes vulnerable. The important question is, whether PKE offers useful explanations of ongoing socio-economic transformations. PKE has generated valuable insights on core areas such as monetary macroeconomics and medium-term growth theory, but it offers little on important real world phenomena like the globalisation of production and social issues like precarisation and the polarization of income distribution or ecological challenges like climate change. It is these issues that will decide the future of PKE.