knowledge sector is bounded, as productivity increases, the economy moves from a Solovian zone where wages increase with … productivity, to a Marxian zone where they paradoxically decline with productivity. This is because as consumption of a given good … more unevenly distributed than productivity, technical progress always increases inequality. Redistribution from profits to …

hiring costs to analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My … wages. I show, however, that in the immediate phase following the labor supply shock, labor productivity and real wages … technology growth and depressing real wages and productivity. I demonstrate that due to the learning-by-doing growth externality …