Perspectives on the Labor Share
Journal of Economic Perspectives
vol. 38,
no. 2, Spring 2024
(pp. 107-36)
(Complimentary)
Abstract
As of 2022, the share of US 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.Citation
Karabarbounis, Loukas. 2024. "Perspectives on the Labor Share." Journal of Economic Perspectives, 38 (2): 107-36. DOI: 10.1257/jep.38.2.107Additional Materials
JEL Classification
- D33 Factor Income Distribution
- E23 Macroeconomics: Production
- E25 Aggregate Factor Income Distribution
- F62 Economic Impacts of Globalization: Macroeconomic Impacts
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