The dynamics of wage analysis in total factor costs
This article reviews recent trends in the labour share in the world economy and analyses possible causes of the observed trends. In a panel of 19 countries, with most data starting in 1960, we document that the labour share fell. A decreasing labour share is observed simultaneously in 17 of the 19 countries. Wage share exhibit a turning point in 1975 for most countries. The main determinants of changes in the labour income share are technological change, globalization, economic policy, economics, trade and international prices, nancial markets, product and labour market institutions, other institutions and politics, the bargaining power of labour and unemployment.