The Role of Global and Sectoral Factors in Labour Share Fluctuations

Información del proyecto

GaSLS

Identificador del acuerdo de subvención: 746100

DOI

10.3030/746100

Proyecto finalizado el 3 Marzo 2019

Fecha de la firma de la CE 24 Marzo 2017

Fecha de inicio 3 Julio 2017

Fecha de finalización 2 Julio 2019

Financiado con arreglo a

• EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions

Coste total

€ 152 653,20

Aportación de la UE

€ 152 653,20

Coordinado por

TRAPEZA TIS ELLADOS AE
Greece

Objetivo

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.

Ámbito científico (EuroSciVoc)

• ciencias sociales › sociología › cuestiones sociales › desigualdad social
• ciencias sociales › economía y empresa › gestión y empresas › empleo
• ciencias sociales › sociología › cuestiones sociales › desempleo

Palabras clave

• income inequality
• labour income share
• dynamic factor models

Programa(s)

• H2020-EU.1.3. - EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions PROGRAMA PRINCIPAL
  
• H2020-EU.1.3.2. - Nurturing excellence by means of cross-border and cross-sector mobility
  

Tema(s)

• MSCA-IF-2016 - Individual Fellowships
  

Régimen de financiación

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

Convocatoria de propuestas

H2020-MSCA-IF-2016

Coordinador

TRAPEZA TIS ELLADOS AE

• Aportación neta de la UEn: € 152 653,20
• Dirección: EL. VENIZELOS 21 ; 10250 Athina ; Grecia
• Región: Αττική › Aττική › Κεντρικός Τομέας Αθηνών
• Tipo de actividad: Private for-profit entities (excluding Higher or Secondary Education Establishments)
• Coste total: € 152 653,20