Wage share and economic growth in Latin America, 1950-2011

Alarco Tosoni, Germán

2014-12-10T12:41:37Z

3
LC/G.2614-P

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This article builds series of wage shares in gross domestic product (GDP) for 15 Latin American economies individually and as a group for the period 1950-2010. Using different methodologies, it is established that wage share is non-linear and has undergone two major cycles. The article discusses various authors, especially classic and post-Keynesian thinkers, who have explored the relationship between wage share in GDP and economic activity. It is also shown that the post-Keynesian approach is relevant in explaining that the main variables determining real gdp variations include wage share, gross capital formation and exports of goods and services. However, the contribution of wage share to real output growth has declined from the 1980s onwards.

ECONOMETRIC MODELS; ECONOMIC GROWTH; GROSS DOMESTIC PRODUCT; WAGES; MODELOS ECONOMETRICOS; PRODUCTO INTERNO BRUTO; CRECIMIENTO ECONOMICO; SALARIOS;