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The Evolution of the Labor Share across Developed Countries

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  • Roberto Pinheiro
  • Meifeng Yang

Abstract

In most developed countries, the share of output accruing to labor has declined over the last 20 years. However, the underlying reasons for the decrease may have differed in the United States and other developed countries. In this Commentary, we examine some of the explanations economists have proposed for the decline in the labor share and discuss how well these explanations account for the decline across developed countries.

Suggested Citation

  • Roberto Pinheiro & Meifeng Yang, 2018. "The Evolution of the Labor Share across Developed Countries," Economic Commentary, Federal Reserve Bank of Cleveland, issue August.
    • Handle: RePEc:fip:fedcec:00092
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    References listed on IDEAS

    as
    1. Ann Harrison, 2022. "Has Globalization Eroded Labor’s Share? Some Cross-Country Evidence," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 5, pages 89-135, World Scientific Publishing Co. Pte. Ltd..
    2. Restuccia, Diego & Urrutia, Carlos, 2001. "Relative prices and investment rates," Journal of Monetary Economics, Elsevier, vol. 47(1), pages 93-121, February.
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    Cited by:

    1. Ivana Ascic & Josip Ascic & Per Hilletofth & Márcio Lopes Pimenta & Olli-Pekka Hilmola, 2022. "An Evaluation of Critical Capabilities and Improvement Areas for Competitive Manufacturing in a Developed-Country Environment," Sustainability, MDPI, vol. 14(11), pages 1-20, May.

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    Keywords

    Labor; compensation;

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