Measuring labor share for Poland – does heterogeneity of labor compensation matter?

Michał Gradzewicz, Janusz Jabłonowski, Michał Sasiela and Zbigniew Żółkiewski
Additional contact information
Janusz Jabłonowski: Narodowy Bank Polski
Michał Sasiela: Narodowy Bank Polski
Zbigniew Żółkiewski: Narodowy Bank Polski

No 368, NBP Working Papers from Narodowy Bank Polski

Abstract: Our study presents a comparison of the results of several methods of including mixed income in the measurement of the labor share based for Poland in the period 2000-2021. We account for the heterogeneity of labor input in the measurement of labor share. Moreover, we introduce an original method, accounting for heterogeneity of labor tax rates between employed and self-employed. All the methods considered are consistent with the national accounts. We apply the labor share measurement methods for Poland, an emerging economy with a particularity high prevalence of self-employment. We show that the corrections of the payroll labor share are substantial and range from 8 to 13 pp. None of the methods applied show a remarkable downward trend in labor share, frequently found in the advanced countries. Instead, labor share in Poland declines clearly up to 2004, but then rises by about 2-5 pp. by the end of 2021. There are diverse patterns on a sectoral level - downward tendencies of labor share in manufacturing and other industries, and increasing tendencies in services. A shift-share analysis shows that the overall change of labor share is mainly due to within industry changes. A positive contribution to labor share of a rising importance of services is neutralized by a negative reallocation effect.

Keywords: labor share; Poland; wage heterogeneity; self-employment; labor tax; shift share (search for similar items in EconPapers)
JEL-codes: D24 D33 E01 E25 J31 O40 (search for similar items in EconPapers)
Pages: 38
Date: 2024
New Economics Papers: this item is included in nep-lma and nep-tra
Note: The authors are greatful to colleagues from NBP/DABE for insightful comments. The views expressed herein are those of the authors and not necessarily those of Narodowy Bank Polski. All remaining errors are ours.
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://static.nbp.pl/publikacje/materialy-i-studia/368_en.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:nbp:nbpmis:368

Access Statistics for this paper

More papers in NBP Working Papers from Narodowy Bank Polski Contact information at EDIRC.
Bibliographic data for series maintained by Jakub Growiec ().