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Definition of Wage Share in the Price-Setting Model
According to the price-setting real wage equation, a firm establishes its price such that the real wage paid to an employee represents a fixed portion, , of that employee's output, . This portion, , is known as the wage share of labor productivity.
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Ch.1 The supply side of the macroeconomy: Unemployment and real wages - The Economy 2.0 Macroeconomics @ CORE Econ
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Definition of Wage Share in the Price-Setting Model
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