Concentrating on the Fall of the Labor Share

David Autor, David Dorn, Lawrence Katz, Christina Patterson and John van Reenen

No 23108, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The recent fall of labor’s share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a “superstar firm” model where industries are increasingly characterized by “winner take most” competition, leading a small number of highly profitable (and low labor share) firms to command growing market share. Building on Autor et al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among firms within industries has risen across much of the private sector; and industries with larger increases in concentration exhibit a larger decline in labor’s share.

JEL-codes: J3 L11 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-ltv
Note: LS PR
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Citations: View citations in EconPapers (234)

Published as David Autor & David Dorn & Lawrence F. Katz & Christina Patterson & John Van Reenen, 2017. "Concentrating on the Fall of the Labor Share," American Economic Review, American Economic Association, vol. 107(5), pages 180-185, May.

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Journal Article: Concentrating on the Fall of the Labor Share (2017)
Working Paper: Concentrating on the fall of the labor share (2017)
Working Paper: Concentrating on the Fall of the Labor Share (2017)
Working Paper: Concentrating on the Fall of the Labor Share (2017)
Working Paper: Concentrating on the fall of the labor share (2017)
Working Paper: Concentrating on the Fall of the Labor Share (2017)
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