Money Wages And Inflation In Turkey, 1939–58: Income Redistribution and the Behaviour of Money Wages During Inflation

During the war, labour’s share in gross value added was relitively stable, rising very slightly. The rise of labour’s share was the result of active pressure on gross margins from rising raw material costs. The rise in money wages ensured that this was sufficient to reduce the share of gross profit. However, since the rise of money wages lagged behind that of raw material costs and final prices, ¹ the declining proportion of labour costs in total prime costs all but counteracted the effect of declining gross margins.