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Der Sonderfall Schweiz: Verlauf und Bestimmungs faktoren der Lohnquote in der Schweiz, 1980– 2012

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Abstract

This paper shows that Switzerland is an exception concerning the labour share of national income: it is one of the very few developed countries which, since 1980, display an increasing labour share. Based on evidence from Swiss firms, this study examines the reasons for the persistence of Switzerland’s labour share. We provide four explanations: i) no structural shifts towards industries with below-average labor shares as observed in other developed countries; ii) a slow rate of technical progress; iii) enduring labour shortages; and iv) a comparatively skilled workforce. However, extrapolations extending observed trends in the determinants of the labour share until 2020 indicate that Switzerland’s labour share might decline in the years to come.

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  • Michael Graff & Michael Siegenthaler, 2014. "Der Sonderfall Schweiz: Verlauf und Bestimmungs faktoren der Lohnquote in der Schweiz, 1980– 2012," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 8(1), pages 79-89, March.
    • Handle: RePEc:kof:anskof:v:8:y:2014:i:1:p:79-89
    DOI: 10.3929/ethz-a-005427569
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    1. Bentolila Samuel & Saint-Paul Gilles, 2003. "Explaining Movements in the Labor Share," The B.E. Journal of Macroeconomics, De Gruyter, vol. 3(1), pages 1-33, October.
    2. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
    3. Brent Neiman, 2014. "The Global Decline of the Labor Share," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 61-103.
    4. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    5. Alain Serres & Stefano Scarpetta & Christine Maisonneuve, 2001. "Falling Wage Shares in Europe and the United States: How Important is Aggregation Bias?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(4), pages 375-401, December.
    6. Michael Siegenthaler & Tobias Stucki, 2014. "Dividing the Pie: The Determinants of Labor's Share of Income on the Firm Level," KOF Working papers 14-352, KOF Swiss Economic Institute, ETH Zurich.
    7. repec:oup:qjecon:v:129:y:2013:i:1:p:61-103 is not listed on IDEAS
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    Cited by:

    1. Siegenthaler Michael & Graff Michael & Mannino Massimo, 2016. "Characteristics and Drivers of the Swiss “Job Miracle”," Review of Economics, De Gruyter, vol. 67(1), pages 53-89, May.
    2. Michael Graff & Massimo Mannino & Michael Siegenthaler, 2014. "The Swiss "Job Miracle"," KOF Working papers 14-368, KOF Swiss Economic Institute, ETH Zurich.

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    More about this item

    Keywords

    Labour share; functional income distribution; firm-level analysis;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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