Perspectives on the Labor Share

Loukas Karabarbounis

No 800, Working Papers from Federal Reserve Bank of Minneapolis

Abstract: As of 2022, the share of U.S. income accruing to labor is at its lowest level since the Great Depression. Updating previous studies with more recent observations, I document the continuing decline of the labor share for the United States, other countries, and various industries. I discuss how changes in technology and product, labor, and capital markets affect the trend of the labor share. I also examine its relationship with other macroeconomic trends, such as rising markups, higher concentration of economic activity, and globalization. I conclude by offering some perspectives on the economic and policy implications of the labor share decline.

Keywords: Inequality; Production; Labor share (search for similar items in EconPapers)
JEL-codes: D20 E20 J30 (search for similar items in EconPapers)
Date: 2023-11-03
New Economics Papers: this item is included in nep-com, nep-inv and nep-lma
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.minneapolisfed.org/research/wp/wp800.pdf (application/pdf)

Related works:
Journal Article: Perspectives on the Labor Share (2024)
Working Paper: Perspectives on the Labor Share (2024)
Working Paper: Perspectives on the Labor Share (2023)
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:fip:fedmwp:97393

DOI: 10.21034/wp.800

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().