‘We deserve more’: US workers’ share of the pie
dwindles
“Perspectives on the Labor Share,” by Loukas
Karabarbounis
As of 2022, the share of US income accruing to labor is
at its lowest level since the Great Depression. Updating previous studies with
more recent observations, I document the continuing decline of the labor share
for the United States, other countries, and various industries. I discuss how
changes in technology and product, labor, and capital markets affect the trend
of the labor share. I also examine its relationship with other macroeconomic
trends, such as rising markups, higher concentration of economic activity, and
globalization. I conclude by offering some perspectives on the economic and
policy implications of the labor share decline.