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The Labor Share of Income Around the World: Evidence from a Panel Dataset

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  • Marta Guerriero

Abstract

This study provides an evaluation of five different methodologies of estimation commonly used in the labor share literature and propose a new measurement. Theglobal dataset of the labor income share across 151 economies is compiled—both developing and developed—for all or part of the period 1970–2015. Results show that our suggested indicator is correlated to the other five measures but it also retains unique information. Contrary to the traditional assumption of stable factor shares, it documents the existence of considerable heterogeneity across economies and variability over time. Specifically, there has been a general decline in the labor share around the world, in particular from the mid-1980s onwards.

Suggested Citation

  • Marta Guerriero, 2019. "The Labor Share of Income Around the World: Evidence from a Panel Dataset," Working Papers id:13008, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:13008
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    More about this item

    Keywords

    eSS; labor share; income; panel dataset; factor shares; income distribution; labor;
    All these keywords.

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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