EconPapers    
Economics at your fingertips  
 

The Decline of Labour Share in New Zealand

Ryan Greenaway-McGrevy and Benjamin Bridgman ()

No 28406, Working Papers from Department of Economics, The University of Auckland

Abstract: The share of national income going to labour in New Zealand declined between the 1970s and the early 2000s. We argue that the majority of this decline can be attributed to institutional changes within the public market sector that began in the late 1980s. Corporatization (and in some cases privatization) re-orientated the enterprises away from a broad range of social and trading objectives towards generating profit for shareholders. The reforms thereby led to an increase in capital services and a corresponding decrease in the observed labour share in the public market sector. Using shift-share analysis we show that this decrease in the labour share of the public market sector accounts for the vast majority of the decline in economy-wide labour share. We also conjecture that a substantial proportion of the sharp increase in income inequality in New Zealand between the mid-1980s and the mid-1990s can be attributed to these institutional changes.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/2292/28406

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:auc:wpaper:28406

Access Statistics for this paper

More papers in Working Papers from Department of Economics, The University of Auckland Contact information at EDIRC.
Bibliographic data for series maintained by Library Digital Development ().

 
Page updated 2019-11-10
Handle: RePEc:auc:wpaper:28406