Paper #374

Título:

Explaining movements in the labor share

Autores:

Samuel Bentolila y Gilles Saint Paul

Fecha:

Abril 1999

Resumen:

In this paper we study the evolution of the labor share in the OECD since 1970. 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 the skill mix; and that discrepancies between the marginal product of labor and the real wage (due to, e.g., product market power, union bargaining, and labor adjustment costs) cause departures from it. We provide estimates of the model with panel data on 14 industries and 14 countries for 1973-93 and use them to compute the evolution of the wage gap in Germany and the US.

Palabras clave:

Labor share, capital-output ratio

Códigos JEL:

E25, J30

Área de investigación:

Economía Laboral, Pública, de Desarrollo y de la Salud

Publicado en:

Contributions to Macroeconomics, Berkeley Electronic Press, vol. 3(1), 2003, pages 1103-1103

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