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"Unwarranted" wage changes and the return on capital

Katsimē, Margarita; Kalyvitēs, Sarantēs; Moutos, Thomas - 2009

Casual empiricism suggests that unwarrantedʺ wage changes, defined as the part of wage growth that is not explained by changes in labour productivity, are negatively associated with the return on capital. The main point of this paper is to show that unwarrantedʺ wage changes have no causal...