On Measuring the Labour Income Share

Benjamin Caswell

No 556, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: The labour income share plays a key role as a parameter in macroeconomic models and has motivated a body of literature with regards to its apparent decline. Despite its crucial importance, there exists no robust consensus on how to quantify the labour income share in practice. This paper explores some of the conceptual issues surrounding measurement and provides a novel empirical application utilising UK sector level national accounts data. Specifically, this involves imputing proprietor labour income at the sector level and then aggregating up to the whole economy. This paper demonstrates that the disaggregated approach amplifies measurement errors under certain imputation assumptions.

Keywords: aggregate income; labour income share; national accounts; measurement (search for similar items in EconPapers)
JEL-codes: E01 E25 P2 (search for similar items in EconPapers)
Date: 2024-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.niesr.ac.uk/wp-content/uploads/2024/05 ... 5NY3wiXXCYORVvFdIWud

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:nsr:niesrd:556

Access Statistics for this paper

More papers in National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research 2 Dean Trench Street Smith Square London SW1P 3HE. Contact information at EDIRC.
Bibliographic data for series maintained by Library & Information Manager ().