Demographic changes and the labor income share

d’Albis, Hippolyte, Ekrame Boubtane and Dramane Coulibaly
Authors registered in the RePEc Author Service: Hippolyte d'Albis

European Economic Review, 2021, vol. 131, issue C

Abstract: In this article, we study the impact of demographic changes on the inequality between capital and labor incomes. More precisely, we analyze the impact of exogenous changes in both the rate of natural increase and the net migration rate on labor income as a share of total income. We estimate a structural vector autoregression (VAR) model on a panel of 18 OECD countries with annual data for 1985–2018. We find that the response of the labor income share to an exogenous change in the rate of natural increase is significantly negative a few years after the shock, whereas its response to an exogenous change in the net migration rate is significantly positive. This suggests that in addition to the factors usually introduced in the literature, demographic factors play a role in the observed variation in the labor income share.

JEL-codes: E20 F22 J61 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: Demographic changes and the labor income share (2021)
Working Paper: Demographic changes and the labor income share (2021)
Working Paper: Demographic Changes and the Labor Income Share (2020)
Working Paper: Demographic Changes and the Labor Income Share (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:131:y:2021:i:c:s0014292120302440

DOI: 10.1016/j.euroecorev.2020.103614

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