Decreasing Hours The Labor Share And The Elasticity Of Substitution
DOWNLOAD
Download Decreasing Hours The Labor Share And The Elasticity Of Substitution PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Decreasing Hours The Labor Share And The Elasticity Of Substitution book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Decreasing Hours The Labor Share And The Elasticity Of Substitution
DOWNLOAD
Author : Rafael Serrano Quintero
language : en
Publisher:
Release Date : 2018
Decreasing Hours The Labor Share And The Elasticity Of Substitution written by Rafael Serrano Quintero and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with categories.
The decline in the labor share has attracted the attention of economists in recent years. Empirical literature has documented that this decline can be explained by the increasing capital intensity of the U.S. economy. This paper proposes a mechanism that accounts for the increasing capital intensity - the slowdown of labor-augmenting technology. Under substitutability of capital and labor, such slowdown induces an increase in the rental rate to wage ratio, thus decreasing the labor share. To asses the empirical validity of this mechanism, I construct a general equilibrium model with a CES production function, a utility function compatible with decreasing hours of work, and use a supply-side system to estimate the model's parameters. I simulate the solution of the model using the actual series for the exogenous variables and I find that the model can account for between half and almost the full decline, depending on the particular specification considered.
Production Technology Market Power And The Decline Of The Labor Share
DOWNLOAD
Author : Agustin Velasquez
language : en
Publisher: International Monetary Fund
Release Date : 2023-02-10
Production Technology Market Power And The Decline Of The Labor Share written by Agustin Velasquez and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-02-10 with Business & Economics categories.
The labor share has been declining in the United States, and especially so in manufacturing. This paper investigates the role of capital accumulation and market power in explaining this decline. I first estimate the production function of 21 manufacturing sectors along time series and including time-varying markups. The elasticities of substitution for most sectors are estimated below one, implying that capital deepening cannot explain the labor share decline. I then track the long-run evolution of the labor share using the estimated production technology parameters. I decompose aggregate labor share changes into sector re-weights, capital-labor substitution, and market power effects. I find that the increase in market power, as reported in recent studies, can account for, at least, 76 percent of the labor share decline in manufacturing. Absent the rise in market power, the labor share would have remained constant in the second half of the 20th century.
Technological Changes Offshoring And The Labor Share
DOWNLOAD
Author : Weicheng Lian
language : en
Publisher: International Monetary Fund
Release Date : 2019-07-02
Technological Changes Offshoring And The Labor Share written by Weicheng Lian and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-07-02 with Business & Economics categories.
Existing studies on the downward trend in the labor share of income mostly focus on changes within individual countries. I document, however, that half of the global decline in the labor share of income can be traced to the relocation of activities between countries. I develop a two-country model to show that when the relative price of investment goods falls, production activities with a small elasticity of substitution between capital and labor tend to get offshored from high- to low-wage countries. The model provides an explanation as to why such relocation may drive the labor share down in both developed and developing economies, as well as globally.
A Decline In Labor S Share With Capital Accumulation And Complementary Factor Inputs
DOWNLOAD
Author : Saumik Paul
language : en
Publisher:
Release Date : 2019
A Decline In Labor S Share With Capital Accumulation And Complementary Factor Inputs written by Saumik Paul and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.
The role of capital accumulation as a driver of the labor income share requires capital and labor to be substitutes, which appears paradoxical in a world predominantly characterized by complementarity between capital and labor. This paper argues that the composition of skills in the labor force and an identification of the elasticity parameters between capital and different skills of labor can reconcile the opposing views. Using a framework with capital-skill complementarity and variable substitution elasticities, the Morishima elasticity of substitution is applied to identify the elasticity parameters at different skill levels and derive the necessary condition for capital accumulation to coexist with a declining labor income share when capital and labor are complements. Empirical evidence supports this proposition.
Labor Income Share
DOWNLOAD
Author : Saumik Paul
language : en
Publisher: Springer Nature
Release Date : 2020-10-01
Labor Income Share written by Saumik Paul and has been published by Springer Nature this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020-10-01 with Business & Economics categories.
This book is about labor income share, which measures the share of national income paid in wages. The global share of income going towards labor is declining, which suggests a more unequal distribution of income. This has sparked debates about fair distribution of personal incomes among academics and policymakers alike. This book joins the discussion by bringing together recent developments in theoretical and empirical research on labor income share and novel insights on the measurement of the labor income share. The aim of this book is to help design policies to reduce inequality and provide useful knowledge to academics, policymakers from government agencies, policy aides in research institutions and think tanks, and broader audiences from public and private organizations.
Understanding National Accounts Second Edition
DOWNLOAD
Author : Lequiller François
language : en
Publisher: OECD Publishing
Release Date : 2014-10-20
Understanding National Accounts Second Edition written by Lequiller François and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014-10-20 with categories.
This is an update of OECD 2006 "Understanding National Accounts". It contains new data, new chapters and is adapted to the new systems of national accounts, SNA 2008 and ESA 2010.
Countercyclical Elasticity Of Substitution
DOWNLOAD
Author : Dongya Koh
language : en
Publisher:
Release Date : 2022
Countercyclical Elasticity Of Substitution written by Dongya Koh and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with Capital categories.
We empirically show that the short-run elasticity of substitution between capital and labor is countercyclical. In recessions, capital and labor are more substitutable than in expansions. This countercyclicality of the elasticity of substitution introduces an asymmetry in an otherwise standard competitive-markets business cycle model that contributes to resolve several labor-market puzzles: the labor productivity puzzle, the Dunlop-Tarshis phenomenon, the hours-productivity puzzle, and the labor share puzzle. Interestingly, the cyclicality of the elasticity of substitution is per se not a source of aggregate fluctuations, but it propagates the effects of other shocks.
Why Is Labor Receiving A Smaller Share Of Global Income Theory And Empirical Evidence
DOWNLOAD
Author : Mai Chi Dao
language : en
Publisher: International Monetary Fund
Release Date : 2017-07-24
Why Is Labor Receiving A Smaller Share Of Global Income Theory And Empirical Evidence written by Mai Chi Dao and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-07-24 with Business & Economics categories.
This paper documents the downward trend in the labor share of global income since the early 1990s, as well as its heterogeneous evolution across countries, industries and worker skill groups, using a newly assembled dataset, and analyzes the drivers behind it. Technological progress, along with varying exposure to routine occupations, explains about half the overall decline in advanced economies, with a larger negative impact on middle-skilled workers. In emerging markets, the labor share evolution is explained predominantly by global integration, particularly the expansion of global value chains that contributed to raising the overall capital intensity in production.
Employment Protection Deregulation And Labor Shares In Advanced Economies
DOWNLOAD
Author : Gabriele Ciminelli
language : en
Publisher: International Monetary Fund
Release Date : 2018-08-16
Employment Protection Deregulation And Labor Shares In Advanced Economies written by Gabriele Ciminelli and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018-08-16 with Business & Economics categories.
Labor market deregulation, intended to boost productivity and employment, is one plausible, yet little studied, driver of the decline in labor shares that took place across most advanced economies since the early 1990s. This paper assesses the impact of job protection deregulation in a sample of 26 advanced economies over the period 1970-2015, using a newly constructed dataset of major reforms to employment protection legislation for regular contracts. We apply the local projection method to estimate the dynamic response of the labor share to our reform events at both the country and the country-industry levels. For the latter, we employ a differences-in-differences identification strategy using two identifying assumptions grounded in theory—namely that job protection deregulation should have larger negative effects in industries characterized by (i) a higher “natural” propensity to adjust the workforce, and (ii) a lower elasticity of substitution between capital and labor. We find a statistically significant, economically large and robust negative effect of deregulation on the labor share. In particular, illustrative back-of-the-envelope calculations suggest that job protection deregulation may have contributed about 15 percent to the average labor share decline in advanced economies. Together with existing evidence regarding the macroeconomic gains from job protection and other labor market reforms, our results also point to the need for policymakers to address efficiency-equity trade-offs when designing such reforms.
Labor Productivity
DOWNLOAD
Author : Peter Chinloy
language : en
Publisher: Cambridge, Mass. : Abt Books
Release Date : 1981
Labor Productivity written by Peter Chinloy and has been published by Cambridge, Mass. : Abt Books this book supported file pdf, txt, epub, kindle and other format this book has been release on 1981 with Business & Economics categories.