IDEAS home Printed from https://ideas.repec.org/a/pal/easeco/v42y2016i2p193-214.html
   My bibliography  Save this article

Globalization and the Labor Share in the United States

Author

Listed:
  • Juann H Hung

    (International Business School Suzhou, Xi’an Jiaotong-Liverpool University, No.111 Ren’ai Road, Dushu Lake Higher Education Town, Suzhou, Jiangsu Province, 215123, China)

  • Priscila Hammett

    (Whirlpool Corporation, 2000 N. M-63, Benton Harbor, MI 49022-2692)

Abstract

This paper examines to what extent globalization has contributed to the decline in the labor share of US national income. It argues that globalization can influence the national labor share (NLS), even though its impacts first occur to the tradable sector. It then empirically estimates the effect of globalization on the labor share in the manufacturing sector, and uses the resulting estimates to infer the effect of globalization on the NLS. Our estimations indicate that not all globalization indicators are negative on the labor share. However, between 1999 and 2009, the included indicators of globalization cut the manufacturing labor share by about 3–6 percentage points, directly contributing to about 20–36 percent of the decline in the NLS in that period. Moreover, that tally is very likely to underestimate the total effect of globalization on the US labor share because the paper’s estimates do not capture the indirect effect of globalization on the labor share of the non-tradable sector.

Suggested Citation

  • Juann H Hung & Priscila Hammett, 2016. "Globalization and the Labor Share in the United States," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 42(2), pages 193-214, March.
    • Handle: RePEc:pal:easeco:v:42:y:2016:i:2:p:193-214
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/eej/journal/v42/n2/pdf/eej201450a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/eej/journal/v42/n2/full/eej201450a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hye‐Sung Kim & Youngchae Lee & Scott Huffmon, 2022. "Public opinion on U.S. investment in foreign countries: Survey evidence from 11 southern states in the United States," Social Science Quarterly, Southwestern Social Science Association, vol. 103(5), pages 1113-1124, September.
    2. Zhang, Fan & Meng, Lei & Sun, Wen & Si, Yanwu, 2021. "Information technology and the labor market in China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 156-168.
    3. Ibarra, Carlos A. & Ros, Jaime, 2023. "Trade and factor intensity, and the transmission of the global shock to labor: A panel analysis of the fall of the labor income share in the Mexican manufacturing sector," Economic Systems, Elsevier, vol. 47(1).
    4. Wei, Xiahai & Jiang, Feng & Chen, Yu, 2023. "Who pays for environmental protection? The impact of green tax reform on labor share in China," Energy Economics, Elsevier, vol. 125(C).
    5. Taining Wang & Jinjing Tian, 2020. "Recasting the trade impact on labor share: a fixed-effect semiparametric estimation study," Empirical Economics, Springer, vol. 58(5), pages 2465-2511, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:42:y:2016:i:2:p:193-214. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.