Wage-led growth: Concept, theories and policies

Abstract

The article aims to reconsider the theories and policies that have prevailed in the world economy during the last decades and have been implemented without being questioned, despite events such as the global financial crisis of 2007, which have demonstrated the inefficiency and instability of unregulated financial markets. It makes a comparative study regarding pro-capital public policies and those pro-labor, as well as between economic regimes driven by profits or by wages, by debt or by exports, and analyzes how the combination of these factors can affect an economy. In this way, it demonstrates that neoliberalism is no longer viable for growth and considers the need for a paradigm shift.