Skip to main content
Go to the home page of the European Commission (opens in new window)
English English
CORDIS - EU research results
CORDIS

The Role of Global and Sectoral Factors in Labour Share Fluctuations

Objective

This project will investigate the distribution of national income between profits and wages as proxied by the labour share in national income. The focus will be to identify the empirical regularities of factor shares in developed and emerging countries and across industries. In 1957, Kaldor established an influential stylised fact for macroeconomic modelling: the stability of the labour share. This finding, which has implications for macroeconomic dynamics, the shape of the production function and inequality, led social scientists to become 'silent' and to neglect research on labour share for many decades. Standard neoclassical growth and business cycle models, following Kaldor’s stylised fact, assume a one-to-one substitution between capital and labour. However, the recent observation of a declining labour share points to an incomplete understanding of macroeconomic dynamics and to potentially erroneous policy implications drawn from these models. This has renewed the interest of macroeconomists to unveil the sources driving this decline. The proposed study on the fluctuations of the labour share from a solid empirical standpoint will provide the broad social science academic community and the policymakers with a better understanding of the behaviour of the labour share. In particular, this project aims at (i) reconciling the existing literature on the sources of labour share decline by examining a large set of driving forces and their relationship to key macroeconomic variables; (ii) providing a descriptive analysis of labour share from a multi-sector and multi-country perspective; as well as, a decomposition of labour share into national and external factors. This project will thus strictly link academic literature and policymakers’ interests with issues such as what should be the appropriate response of governments to the observed decline of the labour share and its implications for fiscal and monetary policy.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

You need to log in or register to use this function

Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MSCA-IF - Marie Skłodowska-Curie Individual Fellowships (IF)

See all projects funded under this funding scheme

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-MSCA-IF-2016

See all projects funded under this call

Coordinator

TRAPEZA TIS ELLADOS AE
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 152 653,20
Address
EL. VENIZELOS 21
10250 Athina
Greece

See on map

Region
Αττική Aττική Κεντρικός Τομέας Αθηνών
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 152 653,20
My booklet 0 0