Worker income share increases relative to capital owners during specific macroeconomic conditions
Macroeconomic studies confirm that the labor share of income fluctuates systematically and varies relative to capital owners depending on business cycle phases and productivity shocks.
The retrieved papers include economic studies examining how functional income distribution between labor and capital shifts across business cycles and in response to macroeconomic shocks, thereby supporting the claim.
Andrea Colciago, Lorenza Rossi. FIRM DYNAMICS, ENDOGENOUS MARKUPS, AND THE LABOR SHARE OF INCOME. 2014. https://doi.org/10.1017/s1365100513000849
Paper [0] shows that the labor share of income responds countercyclically to macroeconomic productivity shocks.
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M. Clemens, Ulrich Eydam, Maik Heinemann. Inequality over the Business Cycle – The Role of Distributive Shocks. 2020. https://doi.org/10.2139/ssrn.3556388
Paper [2] demonstrates that the functional income distribution and capital/income shares fluctuate systematically over the business cycle.
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