Measuring labor's share of an economy's aggregate income seems straightforward, at least in principle. Count up wage and salary income, along with the value of benefits provided to employees, and divide it by total income. However, one fundamental concept of labor's share in macroeconomic theory...

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares....

Alan Krueger (1999) provides a measure of "raw" labor's share for the US postwar economy based on Mincerian regressions using Census data on individual earnings, schooling, and work experience. He finds that raw labor's share fell by over 8 percent from 1959 through 1996 to under 5 percent of...

The common assumptions that labor income share does not change over time or across countries and that factor income shares are equal to the elasticity of output with respect to factors have had important implications for economic theory. However, there are various theoretical reasons why the...