In a research report of the New Economics Foundation (NEF), an independent think-tank, it is noted that, for nearly all European countries, economic growth is ‘wage-led’. This means that the boost to demand from rising wages outweighs other impacts on profits and international competitiveness; growth in national income is driven by growing wages more than by growing company profits. The authors conclude that the slide in the wage share, an outcome of deliberate government policy, has resulted into lower growth overall. Far from boosting growth, and therefore promoting a ‘trickle down’ effect, it has both worsened inequality by squeezing the wage share, and at the same time hampered overall economic development. Restoring the wage share is a win-win: improving both equality and development.
English: https://b.3cdn.net/nefoundation ...
For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Mariya Nikolova mnikolova@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. You may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.