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Wage-led Growth

Wage-led growth is an equitable strategy for recovery that realises that wage growth can support demand via consumption expenditures and it can also induce higher productivity growth. This Research Essay provides an overview of the concept of wage-led growth, both as an analytical concept and as an economic policy strategy.
Neoliberalism resulted in an increase in inequality and a decline in the wage share, but growth has nowhere been based on the profit-led growth process. Rather, neoliberalism has given rise to either debt-led or export-led growth regimes, both of which are unstable.

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