Labor Shares in Some Advanced Economies

20 Pages Posted: 4 Sep 2019

See all articles by Gilbert Cette

Gilbert Cette

Banque de France

Lorraine Koehl

National Institute of Statistics and Economic Studies (INSEE)

Thomas Philippon

New York University (NYU) - Department of Finance; National Bureau of Economic Research (NBER)

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Date Written: September 2019

Abstract

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

Cette, Gilbert and Koehl, Lorraine and Philippon, Thomas, Labor Shares in Some Advanced Economies (September 2019). NYU Stern School of Business, Available at SSRN: https://ssrn.com/abstract=3447212 or http://dx.doi.org/10.2139/ssrn.3447212

Gilbert Cette (Contact Author)

Banque de France ( email )

Paris
France

Lorraine Koehl

National Institute of Statistics and Economic Studies (INSEE) ( email )

18, Boulevard Adolphe-Pinard
92244 Malakoff Cedex
France

Thomas Philippon

New York University (NYU) - Department of Finance ( email )

Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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