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Labor Share Decline and Intellectual Property Products Capital

Author

Listed:
  • Dongya Koh

    (University of Arkansas)

  • Raul Santaeulalia-Llopis

    (MOVE-UAB and Barcelona GSE)

  • Yu Zheng

    (Queen Mary University of London)

Abstract

We study the behaviour of the US labor share over the past 70 years. We find that the capitalization of intellectual property products in the national income and product accounts entirely explains - in a purely accounting sense - the observed decline of the US labor share. We assess the implications of this result for the US macroeconomic model and discuss the way forward.

Suggested Citation

  • Dongya Koh & Raul Santaeulalia-Llopis & Yu Zheng, 2018. "Labor Share Decline and Intellectual Property Products Capital," Working Papers 873, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:873
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    Keywords

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    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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