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A New View of Economic Growth$
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Maurice FitzGerald Scott

Print publication date: 1991

Print ISBN-13: 9780198287421

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198287429.001.0001

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Why Growth Rates (and Factor Shares) Differ, II

Why Growth Rates (and Factor Shares) Differ, II

Chapter:
(p.311) 11 Why Growth Rates (and Factor Shares) Differ, II
Source:
A New View of Economic Growth
Author(s):

Maurice FitzGerald Scott

Publisher:
Oxford University Press
DOI:10.1093/0198287429.003.0011

The linear equation of Ch. 10 is an approximation, a curvilinear relationship being theoretically preferable. The latter implies that the share of wages in total income falls the faster is the rate of growth of employment, cet. par. Some support for this is provided by the data used in Ch. 10, but there are evidently other important influences on the share of wages, which are discussed.

Keywords:   curvilinear relation, rate of growth of employment, share of wages

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