Garibaldi, Pietro; Turri, Enrico D. - 2024
The neoclassical growth model assumes fixed labor supply and competitive labor markets. Is it harmless to ignore … consistent with the long-run dynamics of the labor share. This paper solves a minimalist growth model with monopsonistic power at … power by the representative firm implies either a "level" or a "growth" effect in the determination of the labor share. If …