Low Wage Growth: Why It Matters and How to Fix It

Stephen Bell; Michael Keating

doi:10.1111/1467-8462.12343

Low Wage Growth: Why It Matters and How to Fix It

Stephen Bell^*, Michael Keating

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

Neoclassical economic theory and its supply-side account of the drivers of economic growth has been influential amongst Australian economic policymakers and advisors. In the post-Keynesian tradition, we argue instead that aggregate demand drives economic growth, even in the medium term. In particular, the investment and innovation that depends upon that investment are mainly determined by the investment response to consumer demand. Currently, weak wages growth in Australia is weakening that consumer demand. The paper examines the causes of weak wages growth and offers solutions.

Original language	English
Pages (from-to)	377-392
Number of pages	16
Journal	Australian Economic Review
Volume	52
Issue number	4
DOIs	https://doi.org/10.1111/1467-8462.12343
Publication status	Published - 1 Dec 2019

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Low Wage Growth: Why It Matters and How to Fix It

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