An Empirical Study of Labour’s Share in Income for Australia

Macri, Joseph and Sinha, Dipendra (1999): An Empirical Study of Labour’s Share in Income for Australia.

Abstract

Economists have long been studying the shares of labour and capital in income. Surprisingly, no such empirical studies exist for Australia. This paper looks at a number of variables that can affect labour’s share in income: unemployment, capacity utilisation, growth rate of GDP and changes in the price level. Our study finds that the wage share is inversely related to unemployment, capacity utilisation and the growth rate of GDP but positively related to changes in prices.

• Item Type: MPRA Paper
• Institution: Macquarie University, Australia and Ritsumeikan Asia Pacific University, Japan
• Language: English
• Keywords: labour's share; Australia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General

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