The Wage Determination Process in Turkey: An Empirical Analysis in Kaleckian Perspective
Orthodox economists generally think about labor market that the price stability and low unemployment cannot be achieved at the same time. In this sense, the Orthodox argument discusses that a decline in the aggregate demand will decrease the money wages and real wages proportionally, and increase...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ala-Too International University
2014-05-01
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| Series: | Eurasian Journal of Business and Economics |
| Subjects: | |
| Online Access: | http://www.ejbe.org/EJBE2014Vol07No13p119AKTAKAS-AKIN.pdf |
| Summary: | Orthodox economists generally think about labor market that the price stability and
low unemployment cannot be achieved at the same time. In this sense, the
Orthodox argument discusses that a decline in the aggregate demand will decrease
the money wages and real wages proportionally, and increase the volume of
employment. Michal Kalecki denies such a wage policy which is consistently
determined by this idea. Wages reflect the price-money wage relation in real terms.
Prices set in regard to the degree of monopoly. In this context, it is assumed real
wages is determined depending upon the degree of monopoly, labor productivity
and price of import goods. According to Kalecki, Orthodoxian view which relates a
decrease in real wages with an increase in production based on increasing marginal
cost assumption and Kalecki does not accept this perspective. Kaleckian PostKeynesian
labor market will be theoretically discussed and the determination
process of the real wage will be empirically analyzed for Turkish economy over the
period 1989:1 to 2012:4. |
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| ISSN: | 1694-5948 1694-5972 |