Remeasuring labour's share

Andrew T. Young; Hernando Zuleta

doi:10.1080/13504851.2012.718061

Remeasuring labour's share

Andrew T. Young, Hernando Zuleta

Free Market Institute

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

Krueger (1999) provides a measure of 'raw' labour's share for the US post-war economy based on Mincerian regressions. He finds that raw labour's share fell by over 8 percentage points from 1959 to 1996. We provide an alternative estimate using direct observations on the wage rates of raw labour units, i.e. those with 8 years of education or less; aged 16-18 years. Our measure of raw labour's share is considerably higher on average than Krueger's. Furthermore, our measure rises during the later part of the sample and is over 22% by 1996.

Original language	English
Pages (from-to)	549-553
Number of pages	5
Journal	Applied Economics Letters
Volume	20
Issue number	6
DOIs	https://doi.org/10.1080/13504851.2012.718061
State	Published - Apr 2013

Keywords

biased technical change
capital intensity
development
factor shares
human capital
labour's share

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