Profits and wages in Ireland, 1987-1996
Item Type:Journal article
Citation:Lane, Philip R. 'Profits and wages in Ireland, 1987-1996'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXVII, Part V, 1997/1998, pp223-252
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A striking feature of the Irish economic resurgence since 1987 has been a major factor income shift away from labour and towards capital. (The profit share has increased from 25.1 per cent in 1987 to 34.8 per cent in 1996.) In this paper, we examine the role of the national strategy of wage moderation in explaining this shift, consider its potential benefits and ask whether it is sustainable. We highlight the critical role of fiscal policy in minimising the trade-off between the returns to capital and labour. Finally, imminent membership of a European Monetary Union makes it all the more important not to overshoot the equilibrium rate of wage growth for the Irish economy.
Description:Read before the Society, 7 May 1998
Author: Lane, Philip R.
Other Titles:Barrington Lecture 1997/1998
Publisher:Statistical and Social Inquiry Society of Ireland
Type of material:Journal article
Series/Report no:Journal of The Statistical and Social Inquiry Society of Ireland
Vol. XXVII, Part V, 1997/1998
Availability:Full text available