1. Differences in wage-determination systems between regular and non-regular employment in a Kaleckian model*
- Author
-
Ryunosuke Sonoda and Hiroaki Sasaki
- Subjects
Wage rate ,Economics and Econometrics ,Labour economics ,050208 finance ,Comparative statics ,media_common.quotation_subject ,05 social sciences ,Wage ,Post-Keynesian economics ,jel:E25 ,jel:J31 ,jel:E12 ,wage gap ,regular and non-regular employment ,demand-led growth model ,0502 economics and business ,Economics ,Wage share ,050207 economics ,health care economics and organizations ,Wage bargaining ,media_common - Abstract
In this study, we build a Kaleckian model incorporating institutional differences between the wage determination of regular employment and that of non-regular employment. Using this model, we investigate how an employment shift toward regular workers affects the capacity utilization rate and income distribution. Our results show that while such shift in employment decreases the capacity utilization rate and increases the wage share of regular workers, it either increases or decreases the wage share of non-regular workers. An increase in the flexibility of the labor market, as seen in an employment shift toward non-regular workers, increases the amplitude of business cycles. However, the introduction of a minimum wage fornon-regular workers stabilizes the economy.
- Published
- 2019