EconPapers    
Economics at your fingertips  
 

The global decline in the labour income share: is capital the answer to Germany’s current account surplus?

Bennet Berger and Guntram Wolff

Policy Contributions from Bruegel

Abstract: This paper links the major divergences between the three largest euro-area countries in terms of unit labour costs and current accounts, to the broader debate on labour income shares. The authors show that Germany, like the United States and Japan, has experienced a significant decline in the share of national income that goes to labour. At the same time, labour shares in France and Italy have increased since the beginning of monetary union, breaking a trend that had persisted for several decades. The capital intensity of production has increased much more significantly in France and Italy, while in Germany the capital-to-GDP ratio has stagnated and the net public capital stock has fallen. Our data suggests that capital and labour have been complements.

New Economics Papers: this item is included in nep-eec
Date: 2017-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://bruegel.org/wp-content/uploads/2017/04/PC-12-2017-1.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:bre:polcon:20285

Access Statistics for this paper

More papers in Policy Contributions from Bruegel Contact information at EDIRC.
Bibliographic data for series maintained by Bruegel ().

 
Page updated 2019-10-01
Handle: RePEc:bre:polcon:20285