The declining labour share of income: Accounting for the main factors — Jan Mischke, Hans‐Helmut Kotz, Jacques Bughin

Since the 1980s, labour compensation relative to aggregate output has been on an inexorable downward trend across major developed economies. This column deploys a simple accounting technology to tease out the driving factors behind this, focusing on the US. The findings highlight the key role of under-appreciated factors, including supercycles and boom-bust effects and rising depreciation. The analysis suggests that while the effect of some factors may dampen or reverse, others will likely continue at an uncertain pace.…

More factors to consider. The most provocative claim is that commonly accepted major factors turn out not to be the major factors in the causal mix.

Vox.EU
The declining labour share of income: Accounting for the main factors

Jan Mischke, Hans‐Helmut Kotz, Jacques Bughin