Sunday, August 28, 2016

Share the wealth comrade capitalist

"The 2000s witnessed an unprecedented drop
in the labor share of income.

  the stagnation of wages,
 rather than accelerated labor productivity,
 has been behind the drop in the labor share from 2000 onward. "

A longer view
Back to 1987 

" manufacturing..... dropped almost 10 percentage points. 
Virtually all the major manufacturing subsectors saw their labor shares fall; 
for nondurable goods manufacturing it dropped from 62 percent to 40 percent. 

The labor share within the service sector kept increasing, as it had before 1987, 
but very modestly, only enough to cancel the downward pressure 
from the shift across sectors. Indeed, had the labor share of income
in manufacturing stayed constant, the overall labor share would have barely budged. "