Dividing the Pie: The Determinants of Labor’s Share of Income on the Firm Level
the Determinants of Labor’s Share of Income on the Firm Level
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Date
2014-02
Publication Type
Working Paper
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yes
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Abstract
This paper is the first to study the factors determining labor’s share of income on the level of the individual firm, employing an unusually informative panel data set. The empirical examination is concerned with Switzerland which stands out as one of the very few developed countries with a stable labor share. Broadly confirming results from previous cross-country and industry-level studies, we find that the main factor decreasing the labor share in the estimation period is the increase in the share of workers using ICT in the firm. The main reasons why Switzerland’s labor share remained almost constant are its relatively slow-rate of technological progress and shifts towards industries with above-average labor shares.
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published
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Volume
352
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Publisher
KOF Swiss Economic Institute, ETH Zurich
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Subject
Labor share; Factor income distribution; Firm-level analysis
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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Is source of: http://hdl.handle.net/20.500.11850/97648