A decomposition of the labor share decline in the US business sector

Guillaume Bazot and David Guerreiro ()
Additional contact information
David Guerreiro: LED, University Paris 8, https://sites.google.com/site/up8led/research/banking-finance/guerreiro-d

No 2503, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: Based on the calibration of a simple model, we decompose the decline in the labor share into four structural components: task displacement, labor rents, capital rents, and labor-capital substitution effect. Our estimation suggests that task displacement and the switch of distributed rents from labor to capital are the main drivers of the labor share decline over the past three decades. On the other hand, the neoclassical substitution effect seems not to have a long term impact on the labor share.

Keywords: labor share; task displacement; automation; labor rents; capital rents; markup; rate of return on capital; productivity (search for similar items in EconPapers)
JEL-codes: E2 E4 J3 N12 O4 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2025-02
New Economics Papers: this item is included in nep-eff and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... rs/wp_2025_nr_03.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:2503

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().