Tuesday, 2 July 2019

On the socially optimal labour share of income

a column by Jakub Growiec, Peter McAdam and Jakub Mućk for VOX: CEPR’s Policy Portal

The worldwide decline of the labour share is worrying, because the labour share is thought to be too low.

This column attempts to derive an estimate of the socially optimal labour share. The calibration implies that the socially optimal share is 17% higher than the historical average.

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Hazel&rsquo's comment:
I will freely admit that I did not manage to follow all the statistical analysis. I have been too long awau from the coalface.





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