[lbo-talk] Gordon paper

Dennis Claxton ddclaxton at earthlink.net
Wed Mar 1 10:38:03 PST 2006


Tom, thought you'd be interested in this:

>so, the common sense conclusion here is that there is a causal

>relationship between the low wage growth and the high profit growth,

>ie, that profit growth is so robust precisely because wage growth

>has been suppressed. right?

>

>can one actually make that case? or do we think there's something

>else going on?

One can absolutely make that case. In fact, it's the only reasonable explanation for where the productivity gains of the last 4 years have gone. Into profits and upper-managerial pay.

Robert Gordon has a paper on this (which I haven't read yet): <<http://faculty-web.at.northwestern.edu/economics/gordon/BPEA_Meetingdraft_Complete_051118.pdf>http://faculty-web.at.northwestern.edu/economics/gordon/BPEA_Meetingdraft_Complete_051118.pdf>.



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