Analysis on the Determinants of Labor Share and Its Policy Implications

Yaein Baek (), Minsoo Han (), Wongi Kim () and Hyunsuk Kim
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Yaein Baek: KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP), Postal: [30147] Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si Korea, https://www.kiep.go.kr/eng/
Minsoo Han: Department of International Trade, Inha University, Postal: INHA UNIVERSITY, 100 Inha-ro, Michuhol-gu, Incheon 22212, KOREA, https://eng.inha.ac.kr/eng/index.do
Wongi Kim: Department of Economics, Sungshin Women’s University, Postal: Donam Sujung Campus: 2, 34 da-gil, Bomun-ro, Seongbuk-gu, Seoul, Green Campus: 55, 76 ga-gil, Dobong-ro, Gangbuk-gu, Seoul (01133), https://www.sungshin.ac.kr/main_eng/index.do
Hyunsuk Kim: Int’l Macroeconomics Team, Int’l Macroeconomics & Finance Dept, Postal: -, https://www.ifw-kiel.de/institute/research-centers/international-finance-and-macroeconomics/?cookieLevel=not-set

No 23-1, World Economy Brief from Korea Institute for International Economic Policy

Abstract: There has been a significant decline in the global labor share, leading to numerous studies about the cause of this drop. The labor share is used as one of the main indicators of inequality because a decrease in the labor share can lead to aggravation of income inequality. This is because low-skilled workers can be greatly affected by such a decline in the labor share and the main source of in-come for the low-income class, including the self-employed, is labor income. Among various indicators of inequality, this study analyzes the determinants of the change in labor share. Technological changes such as adoption of robots, advancements in information and communications technology (ICT) and the Fourth Industrial Revolution (4IR) are expected to change the labor market. Hence, this study analyzes the impact of technological changes on labor share and suggests policy responses.(the rest omitted)

Keywords: Labor Share; Skill-biased Technological Change; Robots; Income Inequality (search for similar items in EconPapers)
Pages: 7 pages
Date: 2023-02-01
New Economics Papers: this item is included in nep-des, nep-ict and nep-mac
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