Higher wages in capital-intensive sectors due to equalized profit rates.
The study shows that when companies negotiate wages, industries with more capital pay higher wages. Instead of wages being lower where profits are higher, some industries can pay higher wages and still make more profit. Changes that weaken workers' bargaining power and help the unemployed can make wages more equal. These changes are supported by both low-wage workers and companies that use a lot of capital. Some new technology can make companies more profitable but lower the overall profit rate.