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Labor share

Abstract : We challenge the accepted wisdom of a global secular decline in the labor share. We document three issues: (i) starting periods for the empirical analysis; (ii) accounting for self-employment; and (iii) accounting for residential real estate income. An empirical analysis is carried out on the Euro Area (EA) and ten developed countries. When the three issues are set aside, the orientation of the labor share in the business sector appears not to be a general downward or upward one.
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Submitted on : Wednesday, May 13, 2020 - 5:36:15 PM
Last modification on : Wednesday, October 21, 2020 - 3:13:05 AM

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Gilbert Cette, Lorraine Koehl, Thomas Philippon. Labor share. Economics Letters, Elsevier, 2020, 188, pp.108979. ⟨10.1016/j.econlet.2020.108979⟩. ⟨hal-02484249⟩

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