Explaining Movements in the Labor Share

  • Bentolila S
  • Saint-Paul G
  • 64

    Readers

    Mendeley users who have this article in their library.
  • 134

    Citations

    Citations of this article.

Abstract

In this paper we study the evolution of the labor share in the OECD. We show it is essentially related to the capital-output ratio; that this relationship is shifted by factors like the price of imported materials or capital-augmenting technological progress; and that discrepancies between the marginal product of labor and the real wage due to, e.g., labor adjustment costs or union wage bargaining cause departures from it. We also provide empirical evidence on the determinants of the labor share with panel data on 13 industries and 12 countries for 1972-93. [PUBLICATION ABSTRACT]

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Get full text

Authors

  • Samuel Bentolila

  • Gilles Saint-Paul

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free