Publication type
Journal Article
Authors
Publication date
March 1, 2024
Summary:
We propose a model-based decomposition method for the aggregate labour share in terms of the first moments of the joint distribution of total factor productivity, market power, wages and prices, and apply it to UK manufacturing using firm-level data for 1998–2014. Contrary to a narrative focussing on increasing disparities between firms, the observed decline in the aggregate labour share over the period is driven entirely by the decline in the labour share of the representative firm, mostly due to an increasing disconnect between average productivity and real wages. Changes in the dispersion of firm-level variables have contributed to slightly contain this decline.
Published in
Labour
Volume and page numbers
Volume: 38 , p.66 -101
DOI
https://doi.org/10.1111/labr.12265
ISSN
11217081
Subjects
Notes
© 2024 The Authors. LABOUR published by Fondazione Giacomo Brodolini and John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
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