Skip to main content
School of Economics and Finance

No. 873: Labor Share Decline and Intellectual Property Products Capital

Dongya Koh , University of Arkansas
Raul Santaeulalia-Llopis , MOVE-UAB and Barcelona GSE
Yu Zheng , Queen Mary University of London

October 12, 2018

Download full paper

Abstract

We study the behaviour of the US labor share over the past 70 years. We find that the capitalization of intellectual property products in the national income and product accounts entirely explains - in a purely accounting sense - the observed decline of the US labor share. We assess the implications of this result for the US macroeconomic model and discuss the way forward.

J.E.L classification codes: E01, E22, E25

Keywords:Labor Share, Intellectual Property Products, Capital, 1999- and 2013-BEA Revisions

Back to top