What Explains the Decline of the U.S. Labor Share of Income? : An Analysis of State and Industry Level Data.
Material type:
TextSeries: IMF working paper ; WP/17/167.Publisher: [Washington, D.C.] : International Monetary Fund, [2017]Copyright date: ©2017Description: 1 online resource (27 pages)Content type: - text
- computer
- online resource
- 1484312996
- 1484311000
- 9781484311004
- 9781484312995
- 339.220973 23
- HG3810 .I45
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Print version record.
Cover; Table of Contents; Abstract; I. Introduction; II. Concepts and Measurement; A. Technology: Routinizability of Occupations; B. International Factors; C. Institutional Factors: Unionization; III. Key Drivers: Data; IV. Empirical Results; A. Shift-Share Analysis; B. Econometric Analysis; C. Robustness Checks; V. Conclusion and Policy Implications; References; Figures; 1. Labor Share: Overall and Corporate Sector; 2. Labor Share by State: Change 2001-2001; 3. Labor Share by Industry: Median Change Across States; 4. U.S. Labor Share and Income Inequality: 1967-2015.
5. Labor Share Drivers by Industry: Median Across States6. Labor Share Decline: Shift-Share, 2001-14; 7. Within Labor Share Decline: Contributions-Baseline; 8. Within Labor Share Decline: Contributions I; 9. Within Labor Share Decline: Contributions II; 10. Within Labor Share Decline: Contributions III; Tables; 1. NAICS Industry Codes; 2. Modeling the Change in Routinization and Offshorability, 2001-14; 3. Modeling the Change in the Labor Share; 4. Modeling the Change in the Labor Share: Robustness Checks I; 5. Modeling the Change in the Labor Share: Robustness Checks II.
6. Modeling the Change in the Labor Share: Robustness Checks IIIAppendix; I. Variable Construction.
The U.S. labor share of income has been on a secular downward trajectory since the beginning of the new millennium. Using data that are disaggregated across both state and industry, we show the decline in the labor share is broad-based but the extent of the fall varies greatly. Exploiting a new data set on the task characteristics of occupations, the U.S. input-output tables, and the Current Population Survey, we find that in addition to changes in labor institutions, technological change and different forms of trade integration lowered the labor share. In particular, the fall was largest, on average, in industries that saw: a high initial intensity of "routinizable" occupations; steep declines in unionization; a high level of competition from imports; and a high intensity of foreign input usage. Quantitatively, we find that the bulk of the effect comes from changes in technology that are linked to the automation of routine tasks, followed by trade globalization.
Master record variable field(s) change: 050, 082, 650