Katsimi, Margarita; Kalyvitis, Sarantis; Moutos, Thomas - In: Cambridge Journal of Economics 36 (2012) 2, pp. 435-461
Received wisdom suggests that 'excessive' wages, defined as the part of real wages that do not follow labour productivity developments, are adversely associated with the return on capital. This paper argues that excessive wages and profits are better thought of as responses to changes in the...