The labour market and inflation in transitional growth: lessons from the Italian experience
The paper argues that in later-developing countries that have chosen an export-led growth strategy, such as Italy, growth is likely to be sped up in the initial stage when technology provides an increase in labor productivity to counterbalance the rise in money wages. As the stage of ‘unlimited supp...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Associazione Economia civile
2013-10-01
|
| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10748 |
| _version_ | 1811172432209248256 |
|---|---|
| author | P. PETTENATI |
| author_facet | P. PETTENATI |
| author_sort | P. PETTENATI |
| collection | DOAJ |
| description | The paper argues that in later-developing countries that have chosen an export-led growth strategy, such as Italy, growth is likely to be sped up in the initial stage when technology provides an increase in labor productivity to counterbalance the rise in money wages. As the stage of ‘unlimited supply of labour’ comes to an end, however, the imitation of international wage levels spreads and increasing inflationary tendencies appear. At the same time, the implementation of welfare systems inflates government expenditures and deficits, thus lowering the national propensity to save and the ‘warranted’ rate of growth. A model of inflation for late-developing countries in employed to develop this argument.
JEL: J01, E31, O33
|
| first_indexed | 2024-04-10T17:29:58Z |
| format | Article |
| id | doaj.art-1e08d5da38ca47a2a453a4efd10e5669 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:29:58Z |
| publishDate | 2013-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-1e08d5da38ca47a2a453a4efd10e56692023-02-03T16:47:39ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-10-013514110.13133/2037-3643/10748The labour market and inflation in transitional growth: lessons from the Italian experienceP. PETTENATIThe paper argues that in later-developing countries that have chosen an export-led growth strategy, such as Italy, growth is likely to be sped up in the initial stage when technology provides an increase in labor productivity to counterbalance the rise in money wages. As the stage of ‘unlimited supply of labour’ comes to an end, however, the imitation of international wage levels spreads and increasing inflationary tendencies appear. At the same time, the implementation of welfare systems inflates government expenditures and deficits, thus lowering the national propensity to save and the ‘warranted’ rate of growth. A model of inflation for late-developing countries in employed to develop this argument. JEL: J01, E31, O33 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10748Italylater developed countriesgrowthlabourinflation |
| spellingShingle | P. PETTENATI The labour market and inflation in transitional growth: lessons from the Italian experience PSL Quarterly Review Italy later developed countries growth labour inflation |
| title | The labour market and inflation in transitional growth: lessons from the Italian experience |
| title_full | The labour market and inflation in transitional growth: lessons from the Italian experience |
| title_fullStr | The labour market and inflation in transitional growth: lessons from the Italian experience |
| title_full_unstemmed | The labour market and inflation in transitional growth: lessons from the Italian experience |
| title_short | The labour market and inflation in transitional growth: lessons from the Italian experience |
| title_sort | labour market and inflation in transitional growth lessons from the italian experience |
| topic | Italy later developed countries growth labour inflation |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10748 |
| work_keys_str_mv | AT ppettenati thelabourmarketandinflationintransitionalgrowthlessonsfromtheitalianexperience AT ppettenati labourmarketandinflationintransitionalgrowthlessonsfromtheitalianexperience |