Explaining Movements in the Labour Share
Samuel Bentolila () and
Gilles Saint-Paul ()
No 1958, CEPR Discussion Papers from C.E.P.R. Discussion Papers
In this paper we study the evolution of the labour share in the OECD since 1970. We present a theoretical model showing that it is essentially related to the capital-output ratio; that this relationship is shifted by factors like the price of imported materials or the skill mix; and that discrepancies between the marginal product of labour and the real wage (due to, e.g. product market power, union bargaining, and labour adjustment costs) cause departures from it. We estimate the model with panel data on 15 industries and 14 countries for 1973-93 and derive the evolution of the wage gap in Germany and the United States.
Keywords: capital-output ratio; labour share (search for similar items in EconPapers)
JEL-codes: E25 J30 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (25) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Explaining Movements in the Labor Share (2003)
Working Paper: Explaining Movements in the Labor Share (1999)
Working Paper: Explaining movements in the labor share (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:1958
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1958
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ..
Series data maintained by (). This e-mail address is bad, please contact .