Labor Shares in Some Advanced Economies
20 Pages Posted: 4 Sep 2019
Date Written: September 2019
We study the joint impact of three measurement issues in the empirical literature on the labor share: (i) start and end periods for the empirical analysis; (ii) accounting for self-employment; and (iii) accounting for residential real estate income. When we correct for these three potential biases, we do not find a general decline in the labor share in our sample of advanced economies. In that respect the behavior of the US labor share after 2000 presents a puzzle.
Keywords: labor share, labor cost, value added sharing
JEL Classification: D33, D24, J33
Suggested Citation: Suggested Citation