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Labor Shares in Some Advanced Economies

Author

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  • Gilbert Cette
  • Lorraine Koehl
  • Thomas Philippon

Abstract

We study the joint impact of three measurement issues in the empirical literature on the labor share: (i) start and end periods for the empirical analysis; (ii) accounting for self-employment; and (iii) accounting for residential real estate income. When we correct for these three potential biases, we do not find a general decline in the labor share in our sample of advanced economies. In that respect the behavior of the US labor share after 2000 presents a puzzle.

Suggested Citation

  • Gilbert Cette & Lorraine Koehl & Thomas Philippon, 2019. "Labor Shares in Some Advanced Economies," Working papers 727, Banque de France.
  • Handle: RePEc:bfr:banfra:727
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    References listed on IDEAS

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    14. Efraim Benmelech & Nittai Bergman & Hyunseob Kim, 2018. "Strong Employers and Weak Employees: How Does Employer Concentration Affect Wages?," NBER Working Papers 24307, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Jesús Fernández-Villaverde & Federico Mandelman & Yang Yu & Francesco Zanetti, 2021. "The “Matthew effect” and market concentration: Search complementarities and monopsony power," CAMA Working Papers 2021-22, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Song, Eunbi, 2021. "What drives labor share change? Evidence from Korean industries," Economic Modelling, Elsevier, vol. 94(C), pages 370-385.
    3. Philippe Aghion & Antonin Bergeaud & Huiyu Li & Peter Klenow & Timo Boppart, 2019. "A Theory of Falling Growth and Rising Rents," 2019 Meeting Papers 458, Society for Economic Dynamics.
    4. Cette Gilbert & Nevoux Sandra & Py Loriane, 2020. "The Impact of ICTs and Digitalization on Productivity and Labor Share: Evidence from French firms," Working papers 785, Banque de France.
    5. Cette, Gilbert & Koehl, Lorraine & Philippon, Thomas, 2020. "Labor share," Economics Letters, Elsevier, vol. 188(C).
    6. Matthew Fisher-Post, 2020. "Factor Shares in the long run," Working Papers hal-02876978, HAL.
    7. d’Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2021. "Demographic changes and the labor income share," European Economic Review, Elsevier, vol. 131(C).
    8. Mondolo, Jasmine, 2020. "Macro and microeconomic evidence on investment, factor shares, firm and labor dynamics in Italy and in Trentino," MPRA Paper 99138, University Library of Munich, Germany.
    9. ADACHI Daisuke & SAITO Yukiko, 2020. "Multinational Production and Labor Share," Discussion papers 20012, Research Institute of Economy, Trade and Industry (RIETI).
    10. Odran Bonnet & Guillaume Chapelle & Alain Trannoy & Etienne Wasmer, 2019. "Secular Trends in Wealth and Heterogeneous Capital: Land is Back... and Should Be Taxed," Sciences Po publications 2019-14, Sciences Po.
    11. Matthew Fisher-Post, 2020. "Factor Shares in the long run," World Inequality Lab Working Papers hal-02876978, HAL.

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    More about this item

    Keywords

    : labor share; labor cost; value added sharing.;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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