The Balance Between Labor and Capital: Do Profits Consume Wages?

Dialogues économiques
MAY 10, 2022
How are wages decided upon? One major determining factor is how value added is shared between a company’s profits and employee compensation. It has been collectively admitted that over the past forty years, profits have increased in many developed countries at the expense of wages. Economists Gilbert Cette, Lorraine Koehl, and Thomas Philippon look at this in a new light and demonstrate that the percentage for wages has actually increased in France.

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