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Adjusting the Australian Labour Share for Depreciation, Housing and Other Factors, 1960–2016

Declan Trott and Leo Vance

Economic Papers, 2018, vol. 37, issue 4, 412-428

Abstract: We adjust published Australian labour share series by excluding depreciation and housing from total factor income, and using a range of approximations for self‐employment, business and private sector income. The resulting estimates of the net, non‐housing labour share were at approximately their long‐run averages in 2015–2016. The adjustments do, however, generate a stronger decline and recovery in the labour share during and after the mining boom. Overall, there is little sign of a long‐term decline in the labour share.

Date: 2018
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Handle: RePEc:bla:econpa:v:37:y:2018:i:4:p:412-428