Understanding the global decline in the labor income share : why did labor's share of income decline among low-skilled workers but increase among the high-skilled?

Saumik Paul

Globally, the share of income going to labor (the “labor income share”) is declining. However, this aggregate decline hides more than it reveals. While the labor income share has decreased for low-skilled workers, this has been concurrent with an increase for high-skilled workers. Globalization leading to a growing skill premium and an increasing complementarity between capital and skill through the advancement of technology explains the polarization of labor income shares across the skill spectrum.

MoreLess

Year of publication:	2020
Authors:	Paul, Saumik
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	labor income share \| skills \| technology \| globalization \| Lohnquote \| Labor share \| Ungelernte Arbeitskräfte \| Unskilled workers \| Technischer Fortschritt \| Technological change \| Einkommensverteilung \| Income distribution \| Globalisierung \| Globalization \| Qualifikation \| Occupational qualification \| Lohn \| Wages \| Hochqualifizierte Arbeitskräfte \| Highly skilled workers