dc.contributor.author | Bergholt, Drago | |
dc.contributor.author | Furlanetto, Francesco | |
dc.contributor.author | Faccioli, Nicolò Maffei | |
dc.date.accessioned | 2020-04-30T06:27:05Z | |
dc.date.available | 2020-04-30T06:27:05Z | |
dc.date.issued | 2019 | |
dc.identifier.isbn | 978-82-8379-115-0 | |
dc.identifier.issn | 1502-8190 | |
dc.identifier.uri | https://hdl.handle.net/11250/2652986 | |
dc.description.abstract | We estimate a structural vector autoregressive model in order to quantify four main explanations for the decline of the US labor income share: (i) rising market power of firms, (ii) falling market power of workers, (iii) higher investment-specific technology growth, and (iv) the widespread emergence of automation or robotization in production processes. Identification is achieved with theory robust sign restrictions imposed at medium-run horizons. The restrictions are derived from a stylized macroeconomic model of structural change. Across specifications we find that automation is the main driver of the long-run labor share. Firms’ rising markups can, however, account for a significant part of the accelerating labor share decline observed in the last 20 years. Our results also point to complementarity between labor and capital, thus ruling out capital deepening as a major force behind declining labor shares. If anything, investment-specific technology growth has contributed to higher labor income shares in our sample. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Norges Bank | en_US |
dc.relation.ispartofseries | Working Paper;18/2019 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | labor income share | en_US |
dc.subject | secular trends | en_US |
dc.subject | technological progress | en_US |
dc.subject | market power | en_US |
dc.subject | JEL: E2 | en_US |
dc.subject | JEL: D2 | en_US |
dc.subject | JEL: D4 | en_US |
dc.subject | JEL: J3 | en_US |
dc.subject | JEL: L1 | en_US |
dc.title | The decline of the labor share: new empirical evidence | en_US |
dc.type | Working paper | en_US |
dc.description.version | publishedVersion | en_US |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | en_US |
dc.source.pagenumber | 42 | en_US |