Tuesday, January 1, 2013

Cleveland Fed: Labor's Declining Share of National Income

The Cleveland Fed has a piece on labor (vs. capital) receiving a declining share of national income.

Labor's Declining Share of Income and Rising Inequality by Jacobson and Occhino.

Traditionally labor income ad benefits have received about 2/3 of all national income and capital has received 1/3 of national income.  The article supports the idea that for the pass 30 years the returns to labor have been dropping. The result is flattening wages and increasing income inequality.

No comments:

Post a Comment

Blog Archive