The decline of labour share in OECD and non-OECD since the 1980s

Kheng, Veasna and Mckinley, Justin and Pan, Lei (2021): The decline of labour share in OECD and non-OECD since the 1980s.

Abstract

This paper examines the causes of falling labour share in OECD and non-OECD countries since the 1980s. The results show that export and volatility are key drivers in OECD countries, but in non-OECD countries, the significant factors are financial openness and the capital’s relative price.

• Item Type: MPRA Paper
• Language: English
• Keywords: Elasticity of substitution; Financial openness; Labour share; Trade; Volatility
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E25 - Aggregate Factor Income Distribution; F - International Economics > F6 - Economic Impacts of Globalization > F66 - Labor; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

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