The Structural Determinants of the Labor Share in Europe

42 Pages Posted: 15 Apr 2019

See all articles by Dilyana Dimova

Dilyana Dimova

International Monetary Fund (IMF)

Date Written: March 2019

Abstract

The labor share in Europe has been on a downward trend. This paper finds that the decline is concentrated in manufacture and among low- to mid-skilled workers. The shifting nature of employment away from full-time jobs and a rollback of employment protection, unemployment benefits and unemployment benefits have been the main contributors. Technology and globalization hurt sectors where jobs are routinizable but helped others that require specialized skills. High-skilled professionals gained labor share driven by productivity aided by flexible work environments, while low- and mid-skilled workers lost labor share owing to globalization and the erosion of labor market safety nets.

Keywords: National income, Labor market reforms, National income accounts, Economic integration, Labor market policy, labor share, technology, employment policies, globalization, employment protection, temporary contract, NMS, structural factor, investment good

JEL Classification: E25, F66, J31, O33, E01, E2, J3, P24, F16

Suggested Citation

Dimova, Dilyana, The Structural Determinants of the Labor Share in Europe (March 2019). IMF Working Paper No. 19/67, Available at SSRN: https://ssrn.com/abstract=3370964

Dilyana Dimova (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
90
Abstract Views
473
Rank
513,029
PlumX Metrics