The Decline of Labor Share and New Technology Diffusion: Implications for markups and monopsony power

Shoki Kusaka, Tetsuji Okazaki, Ken Onishi and Naoki Wakamori

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We investigate the cause of the decline in labor share using highly-detailed plant level data from the cement industry. Using the information on production technology at each plant, we show that the major source of the decline is due to the diffusion of new technology; The labor share decreases for the plants adopting more advanced capital-intensive technology, whereas it remains steady for the plants keeping the same technology. The use of plant-level technology data is key to rejecting other potential hypotheses, such as increasing market power and monopsony power, and our conclusion would be qualitatively different without it.

Pages: 46 pages
Date: 2023-07
New Economics Papers: this item is included in nep-com and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/23e047.pdf (application/pdf)

Related works:
Working Paper: The Decline of Labor Share and New Technology Diffusion: Implications forMarkups andMonopsony Power (2022)
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:eti:dpaper:23047

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().