The Falling Labour Share Of Income

I am much less convinced this is actually a problem. In fact, I tend to think that the claimed problem doesn’t actually exist. We’ve an accounting issue here, it’s the incorrect way we count both GDP and total labour compensation combining to show us something that isn’t there. But that’s just a view. Here’s some actual research:

The declining labour share of income: Accounting for the main factors from a meso perspective
Jan Mischke, Hans‐Helmut Kotz, Jacques Bughin 26 July 2019

Since the 1980s, labour compensation relative to aggregate output has been on an inexorable downward trend across major developed economies.…

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