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Measuring the Share of Labour in GDP

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  • Michael Grömling

Abstract

There is a view that increasing inequalities in advanced economies are responsible for growth problems and political polarisation. A new impetus has been injected into the analysis of macroeconomic income distribution since if capital’s share is rising this has implications for the personal distribution of income. An international comparison of data from advanced countries does not reveal any widespread or consistent decrease in labour’s share for the past quarter of a century. No pattern is discernible and a number of statistical limitations and data issues need to be taken into account when interpreting the functional distribution of income.

Suggested Citation

  • Michael Grömling, 2017. "Measuring the Share of Labour in GDP," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 18(4), pages 187-210, October.
    • Handle: RePEc:wej:wldecn:691
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