Income inequality, managers' compensation and the falling rate of profit
Reconciling the US evidence
Bibliographic Data
| ID | 4796933 |
|---|---|
| Authors | Andrew Kliman (Pace University, corresponding author) |
| Year | 2015 |
| Volume | 39 |
| Issue | 2 |
| Pages | 287-320 |
| Publication date | 2015-06-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Capital & Class (JOURNAL) |
| Journal identifiers | ISSN: 0309-8168 • E-ISSN: 2041-0980 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/0309816815587077 |
| OpenAlex | W1949434539 |
| Language | EN |
| Citations received | 3 |
| References cited | 14 |
Evidence based on US government statistics indicates that the rate of profit fell and employees' share of output was trendless between 1970 and the Great Recession. This paper defends that evidence by showing that it is compatible with phenomena that may initially seem to contradict it; that is, rising income inequality and rising managerial compensation. While some other studies claim that managers' compensation and the 'class' rate of profit skyrocketed, this paper shows that these studies seriously overestimate managers' pay, and the share of their pay that can be construed as capital income (disguised dividends) rather than as genuine labour compensation
Dividend · Economic inequality · Economics · Efficiency wage · Fell · Inequality · Labour economics · Macroeconomics · Microeconomics · Rate of profit · Recession · Wage · Wage share · Economic Theory and Institutions · Economic Theory and Policy · Political Economy and Marxism · Finance
| Citations per year | 0.27 |
|---|---|
| Citation span | 2015 - 2024 (10) |
| Highly cited | No |