Is labor's loss capital's gain? Gross versus net labor shares
B Bridgman - Macroeconomic Dynamics, 2018 - cambridge.org
US labor share has been falling since the 1970s. I show that it has not fallen as much once
items that do not add to capital, depreciation and production taxes, are netted out. Recent
net labor share is within its historical range, whereas gross share is at its lowest level. This
effect holds for other high-income economies. The overall picture is no longer one of
unprecedented, globally declining labor share. Using gross share as a proxy for net share
can give misleading results. US gross share and inequality are correlated, whereas net …
items that do not add to capital, depreciation and production taxes, are netted out. Recent
net labor share is within its historical range, whereas gross share is at its lowest level. This
effect holds for other high-income economies. The overall picture is no longer one of
unprecedented, globally declining labor share. Using gross share as a proxy for net share
can give misleading results. US gross share and inequality are correlated, whereas net …