| Full text | |
| Author(s): |
Dosi, Giovanni
[1]
;
Freeman, Richard B.
[2, 3]
;
Pereira, Marcelo C.
[4, 1]
;
Roventini, Andrea
[5, 1]
;
Virgillito, Maria Enrica
[1]
Total Authors: 5
|
| Affiliation: | [1] Scuola Super Sant Anna, Inst Econ & EMbeDS, Piazza Martiri Liberta 33, I-56127 Pisa - Italy
[2] Harvard Univ, 1050 Massachusetts Ave, Cambridge, MA - USA
[3] Natl Bur Econ Res, 1050 Massachusetts Ave, Cambridge, MA - USA
[4] Univ Estadual Campinas, Inst Econ, Rua Pitagoras 353, BR-13083970 Campinas, SP - Brazil
[5] Sci Po, OFCE, Nice - France
Total Affiliations: 5
|
| Document type: | Journal article |
| Source: | INDUSTRIAL AND CORPORATE CHANGE; v. 30, n. 2, SI, p. 377-408, APR 2021. |
| Web of Science Citations: | 0 |
| Abstract | |
This article presents an Agent-Based Model (ABM) that seeks to explain the concordance of sluggish growth of productivity and of real wages found in macroeconomic statistics, and the increased dispersion of firm productivity and worker earnings found in micro level statistics in advanced economies at the turn of the 21st century. It shows that a single market process unleashed by the decline of unionization can account for both the macro- and micro-economic phenomena, and that deunionization can be modeled as an endogenous outcome of competition between high wage firms seeking to raise productive capacity and low productivity firms seeking to cut wages. The model highlights the antipodal competitive dynamics between a ``winner-takes-all economy{''} in which corporate strategies focused on cost reductions lead to divergence in productivity and wages and a ``social market economy{''} in which competition rewards the accumulation of firm-level capabilities and worker skills with a more egalitarian wage structure. (AU) | |
| FAPESP's process: | 15/24341-7 - New strategies to confront with the threat of capacity exhaustion |
| Grantee: | Helio Waldman |
| Support Opportunities: | Research Projects - Thematic Grants |