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Labor’s Share in Hungary

Author

Listed:
  • J. Michael Orszag
  • Peter R. Orszag

    (Magyar Nemzeti Bank)

Abstract

This paper examines labor’s share of income in Hungary. We find that the trend in labor’s share is substantially influenced by the treatment of self-employment; self-employment has declined significantly because of both shifts across sectors and reductions within sectors. Hungary’s labor share has been roughly constant when labor compensation excludes the self-employed. The labor share with an imputation for the self-employed has declined, but data quality concerns and ambiguities surrounding the appropriate imputation make it difficult to reach definitive quantitative conclusions about the extent of the decline. Policymakers and researchers should be cautious in interpreting the apparent shifts in Hungary’s labor share.

Suggested Citation

  • J. Michael Orszag & Peter R. Orszag, 2015. "Labor’s Share in Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(2), pages 5-24.
    • Handle: RePEc:mnb:finrev:v:14:y:2015:i:2:p:5-24
    as

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    File URL: http://english.hitelintezetiszemle.hu/letoltes/1-orszag-orszag-en.pdf
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    References listed on IDEAS

    as
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    6. Bridgman, Benjamin, 2018. "Is Labor'S Loss Capital'S Gain? Gross Versus Net Labor Shares," Macroeconomic Dynamics, Cambridge University Press, vol. 22(8), pages 2070-2087, December.
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    8. Matthew Rognlie, 2015. "Deciphering the Fall and Rise in the Net Capital Share," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 1-69.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kónya, István & Krekó, Judit & Oblath, Gábor, 2020. "Labor shares in the old and new EU member states - Sectoral effects and the role of relative prices," Economic Modelling, Elsevier, vol. 90(C), pages 254-272.

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    More about this item

    Keywords

    national income accounting; factor income; income distribution; employees;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • 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

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