Dongya Koh , University of Arkansas Raul Santaeulalia-Llopis , MOVE-UAB and Barcelona GSE Yu Zheng , Queen Mary University of London
October 12, 2018
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We study the behaviour of the US labor share over the past 70 years. We find that the capitalization of intellectual property products in the national income and product accounts entirely explains - in a purely accounting sense - the observed decline of the US labor share. We assess the implications of this result for the US macroeconomic model and discuss the way forward.
J.E.L classification codes: E01, E22, E25
Keywords:Labor Share, Intellectual Property Products, Capital, 1999- and 2013-BEA Revisions