What do we know about the labor share and the profit share? Part I: Theories

Arbeitspapier

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income - the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the relative shares while others provide a demand-driven explanation (Keynes, Kalecki, Kaldor, Goodwin). Two questions lead to a better understanding of the literature: is income distribution assumed constant?, and is income distribution endogenous or exogenous? However, and despite their insights, these theories alone fail to fully explain the current deterioration of income distribution. Subsequent installments are dedicated to analyzing the empirical literature (part II), to the measurement and composition of the relative shares (part III), and to a study of the role of economic policy (part IV).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 803

Classification and Topics

• Classification: Wirtschaft ; Factor Income Distribution ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Aggregate Factor Income Distribution
• Subject: Wage Share ; Labor Share ; Profit Share ; Ergodicity ; Technology

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Giovannoni, Olivier
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/110011
• Last update: 10.03.2025, 11:41 AM CET