Labor's Share in Hungary

Financial and Economic Review, Vol. 14. Issue 2. pp. 5-24, June 2015

Willis Towers Watson Technical Paper 2756973

20 Pages Posted: 5 Apr 2016

See all articles by J. Michael Orszag

J. Michael Orszag

Willis Towers Watson - Reigate (Surrey Office); Institute for the Study of Labor (IZA)

Peter R. Orszag

Lazard Asset Management

Date Written: June 20, 2015

Abstract

This paper examines labor’s share of income in Hungary. We find that the trend in labor’s share is substantially influenced by the treatment of self-employment; self-employment has declined significantly because of both shifts across sectors and reductions within sectors. Hungary’s labor share has been roughly constant when labor compensation excludes the self-employed. The labor share with an imputation for the self-employed has declined, but data quality concerns and ambiguities surrounding the appropriate imputation make it difficult to reach definitive quantitative conclusions about the extent of the decline. Policymakers and researchers should be cautious in interpreting the apparent shifts in Hungary’s labor share.

Keywords: national income accounting, factor income, income distribution

JEL Classification: E01, E25, J30

Suggested Citation

Orszag, J. Michael and Orszag, Peter R., Labor's Share in Hungary (June 20, 2015). Financial and Economic Review, Vol. 14. Issue 2. pp. 5-24, June 2015; Willis Towers Watson Technical Paper 2756973. Available at SSRN: https://ssrn.com/abstract=2756973

J. Michael Orszag

Willis Towers Watson - Reigate (Surrey Office) ( email )

Watson House
London Road
Reigate, Surrey, RH2 9PQ
United Kingdom
+44 1737 241144 (Phone)
+44 1737 241496 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Peter R. Orszag (Contact Author)

Lazard Asset Management ( email )

30 Rockefeller Plaza
New York, NY 10112
United States

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