The US labor share of income
What shocks matter
Bibliographic Data
| ID | 9256560 |
|---|---|
| Authors | Ivan Mendieta-Muñoz, Ivan Mendieta‐Muñoz (0000-0003-0018-5642, University of Utah, corresponding author), Codrina Rada (0000-0002-8333-8407, University of Utah), Márcio Santetti (0000-0001-8445-9916, University of Utah), Rudiger von Arnim (0000-0003-4745-5080, University of Utah) |
| Year | 2022 |
| Volume | 80 |
| Issue | 4 |
| Pages | 514-549 |
| Publication date | 2022-10-02 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of Social Economy (JOURNAL) |
| Journal identifiers | ISSN: 0034-6764 • E-ISSN: 1470-1162 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00346764.2020.1821907 |
| OpenAlex | W3003190295 |
| Language | EN |
| Citations received | 2 |
| References cited | 39 |
We propose a novel methodological approach to disentangle the main structural shocks affecting the US labor share of income. We motivate an SVAR model to derive four structural shocks: aggregate demand, labor supply, shocks to wages, and productivity; and quantify the dynamic responses of the labor share to each structural shock. We find substantial differences between the immediate post-war era and the neoliberal period. In order of magnitude, the labor share responded mainly to productivity, aggregate demand, and shocks to wages during the immediate post-war era; whereas shocks to wages, productivity, and to aggregate demand mattered most during the neoliberal era. These effects are statistically significantly different across the two periods only for wage and productivity shocks. Increased (decreased) sensitivity to wage (productivity) shocks during the neoliberal period suggests that the decline in the labor share is mainly driven by the factors that govern wage setting
Aggregate demand · Demand shock · Economics · Efficiency wage · Labor demand · Labour economics · Macroeconomics · Monetary economics · Monetary policy · Productivity · Real wages · Shock (circulatory) · Supply and demand · Supply shock · Wage · Wage share · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
Local Projections and VARs Estimate the Same Impulse Responses
Estimation and Inference of Impulse Responses by Local Projections
Structural Vector Autoregressions
Econometric Issues in the Analysis of Regressions with Generated Regressors
The Global Decline of the Labor Share
The Decline of the U.S. Labor Share
Testing for unit roots in autoregressive-moving average models of unknown order
Unit Root Tests in Arma Models with Data-Dependent Methods for the Selection of the Truncation Lag
Not All Oil Price Shocks Are Alike
Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets
Efficient Tests for an Autoregressive Unit Root
Testing the null hypothesis of stationarity against the alternative of a unit root
Dynamic Effects of Persistent Shocks
Estimation and Inference in Two-Step Econometric Models
Labour Market Institutions and the Personal Distribution of Income in the OECD
Increasing Returns and Economic Progress
Where do profits and jobs come from? Employment and distribution in the US economy
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,4 |
| Citation span | 2021 - 2024 (4) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 2 |