This paper looks at how factor shares vary over the business cycle and how their movements fit into Kaleckian analysis. Heterodox accounts of factor share movements include both profit-squeeze arguments (procyclical wage share) and underconsumption arguments (counter-cyclical wage share)....

A fall in national income has varied consequences for the working population: some carry on working as normal, others become unemployed. Those excluded from work lose their main income source and must usually rely on public welfare, entering a financial dependence created endogenously as the...