Kaleckian reflections on the wage share in recent post-keynesian controversies

Abstract

This chapter examines the case for wage-led growth from the point of view of Micha_ Kalecki’s theory of wages. The chapter extends Kalecki’s formal consideration of wage increases to that of an open economy. The chapter argues that wage-led growth is a revival of earlier pre-Keynesian under-consumption theories that consider wages solely as income, rather than as a cost of production in capitalism.