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The Political Economy of the Knowledge Growth Regime

  • Cristiano AntonelliEmail author
Chapter

Abstract

The mechanisms of generation and exploitation of the new knowledge growth regime have major implications on income distribution and are likely to trigger a substantial segmentation of labor markets into the markets for skilled and creative labor and the markets for standard labor. In the context of the globalization of product markets factor costs equalization drives, the wages of standard labor toward global averages that are lower than the pre-globalization levels. The knowledge-intensive direction of technological change favors the resilience of the wages of creative workers. In the corporate growth regime, unions were able favor the internal distribution of the large oligopolistic gross margins increasing wages well above the levels of marginal productivity. The taxation of wealth and high income further reduced the income asymmetries. The small size of knowledge-intensive business firms reduces the role of unions. The capitalization of knowledge helps in increasing the levels of rent and wealth inequalities. The middle class is exposed to the twin pressure of the globalization of product markets, the dynamics of factor cost equalization and the knowledge-intensive direction of technological and structural change. The identification of relevant dynamic increasing returns triggered by the limited exhaustibility of knowledge together with the need to contrast the increasing income inequality call for the effort to increase the social inclusion in the generation and exploitation of knowledge.

Keywords

Income distribution Role of wages Learning processes Knowledge exploitation Middle class Socialization of knowledge 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Dipartimento Di Economia E Statistica Cognetti De Martiis, Collegio Carlo AlbertoUniversity of TurinTurinItaly

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