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Globalisation, concentration and footloose firms: in search of the main cause of the declining labour share

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  • John Hutchinson

    ()

  • Damiaan Persyn

    ()

Abstract

Over the last two decades the share of national income which accrues to labour has followed a marked downward trend across a host of industrialised countries. This paper reassesses the relative importance of several potential causes of this phenomenon. Overall, the findings suggest that lower trade costs and factors often associated with economic integration such as international low-wage competition and industry concentration have contributed to the decline in the labour share. However, their effects have been limited when compared to the effects of skill-based technological change and cyclical price changes of intermediary goods.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 148 (2012)
Issue (Month): 1 (April)
Pages: 17-43

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Handle: RePEc:spr:weltar:v:148:y:2012:i:1:p:17-43

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Related research

Keywords: Labour share; Trade liberalisation; European integration; Technological change; Industry structure; E25; J30; F16; F40;

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References

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Citations

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Cited by:
  1. Damiaan Persyn & John Hutchinson, 2009. "Globalisation, concentration and footloose firms: in search of the main cause of the declining labour share," LICOS Discussion Papers 22909, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Michael Siegenthaler & Tobias Stucki, 2014. "Dividing the Pie: the Determinants of Labor’s Share of Income on the Firm Level," KOF Working papers 14-352, KOF Swiss Economic Institute, ETH Zurich.
  3. Jan Hogrefe & Marcus Kappler, 2013. "The labour share of income: heterogeneous causes for parallel movements?," Journal of Economic Inequality, Springer, vol. 11(3), pages 303-319, September.
  4. Dario Simon Judzik & Hector Sala Lorda, 2014. "The determinants of capital intensity in Japan and the U.S," Working Papers wpdea1404, Department of Applied Economics at Universitat Autonoma of Barcelona.

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