Arbeitspapier
Growing Productivity without Growing Wages: The Micro-Level Anatomy of the Aggregate Labor Share Decline
The aggregate labor share in U.S. manufacturing declined dramatically over the last three decades: Since the mid-1980’s, the compensation for labor declined from 67% to 47% of value added which is unseen in any other sector of the U.S. economy. The labor share of the typical U.S. manufacturing plants, in contrast, rose by over 5 percentage points. We reconcile these two facts by documenting (1) an important reallocation of production towards “hyper-productive plants” and (2) a downward adjustment of the labor share of those same plants over time. These two related forces account for almost all the change in the trend of aggregate labor share in the manufacturing sector, with only a small role for exit of high-labor-share plants. Relative to their peers, plants that account for the majority of production by the late 2000's arrive at a low labor share by gradually increasing value added by a factor of three while keeping employment and compensation unchanged.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 6454
- Klassifikation
-
Wirtschaft
Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
Market Structure, Firm Strategy, and Market Performance: General
Firm Objectives, Organization, and Behavior: General
Industry Studies: Manufacturing: General
Economic Growth and Aggregate Productivity: General
- Thema
-
labor share
productivity
firm size distribution
organization of markets
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kehrig, Matthias
Vincent, Nicolas
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Kehrig, Matthias
- Vincent, Nicolas
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2017
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