Distributive conflict in a post-Kaleckian model with two classes of workers

Abstract

This article develops a post-Kaleckian model to evaluate the effects of changes in (functional and personal) income distribution on economic growth. We specifically developed an analytical model that incorporates the inherent conflict between workers and capitalists and the intra-class tensions among workers with different income levels (for both low and high incomes). The findings clarify the expected effects of these distributional variations on the economy’s dynamic demands and accumulation regime. The analysis developed opens up the possibility of advancing this theoretical approach in multiple directions.