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The labor share, once famously stable, has been declining.
Labor Share of Nonfarm Business Sector The falling labor share results from various factors, including globalization, technology and institutional factors like declining unionization.
Impulse response functions of these variables showed no significant impact on the labor share.
The policies employed to boost competitiveness threaten a further decline in labor share and rising inequality.
We let a be the labor share in that production function.
We examine the impact of improved monitoring and investigate the implication upon labor share, effort and investment.
It shows up as a fall in the labor share of national income".
By contrast, own-industry labor share losses are not recouped elsewhere.
It does not, however, explain why the labor share fell more rapidly during the 2000s.
Our approach also raises the overall top 1% labor share in 2014 from 45% to 56%.
"The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration".
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