The Global Upward Trend in the Profit Share
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
The Global Upward Trend in the Profit Share
Applied Economics Quarterly, Vol. 56 (2010), Iss. 3 : pp. 231–255
14 Citations (CrossRef)
Additional Information
Article Details
Pricing
Author Details
1Head of Financial Stability Department, Reserve Bank of Australia, Sydney, Australia.
2Department of Climate Change and Energy Efficiency, Canberra, Australia.
Cited By
-
The Role of the Public Sector in Building Social and Economic Resilience
The Role of Public Sector Wage Rates in the Determination of Labour Share
Ioannidis, Yiorgos | Giakoulas, Dimitris | Pappas, Anastasios2024
https://doi.org/10.1007/978-3-031-67702-1_5 [Citations: 0] -
Technical change and income inequality in China
Zhang, Xun | Wan, Guanghua | Wang, Chen | Luo, ZhiThe World Economy, Vol. 40 (2017), Iss. 11 P.2378
https://doi.org/10.1111/twec.12531 [Citations: 15] -
The minimum wage, bargaining power, and the top income share
Malloy, Liam C.
Forum for Social Economics, Vol. 49 (2020), Iss. 1 P.75
https://doi.org/10.1080/07360932.2016.1155468 [Citations: 3] -
Inequality and rising profitability in the United States, 1947–2012
Wolff, Edward N.
International Review of Applied Economics, Vol. 29 (2015), Iss. 6 P.741
https://doi.org/10.1080/02692171.2014.956704 [Citations: 9] -
Adjusting the Australian Labour Share for Depreciation, Housing and Other Factors, 1960–2016
Trott, Declan | Vance, LeoEconomic Papers: A journal of applied economics and policy, Vol. 37 (2018), Iss. 4 P.412
https://doi.org/10.1111/1759-3441.12210 [Citations: 1] -
Profit growth in boom and bust: the Great Recession and the Great Depression in comparative perspective
Ivanova, Maria N.
Industrial and Corporate Change, Vol. 26 (2017), Iss. 1 P.1
https://doi.org/10.1093/icc/dtw013 [Citations: 10] -
The Sticky Information Phillips Curve: Evidence for Australia
Gillitzer, Christian
Economic Record, Vol. 92 (2016), Iss. 299 P.548
https://doi.org/10.1111/1475-4932.12279 [Citations: 1] -
Capital income shares and income inequality in 16 EU member countries
Schlenker, Eva | Schmid, Kai D.Empirica, Vol. 42 (2015), Iss. 2 P.241
https://doi.org/10.1007/s10663-015-9282-6 [Citations: 16] -
Factors impeding the use of banking services in rural Southern African states
Choga, Ireen | Mapanga, Arthur | Munapo, EliasBanks and Bank Systems, Vol. 12 (2017), Iss. 3 P.228
https://doi.org/10.21511/bbs.12(3-1).2017.07 [Citations: 1] -
Changes in Income Inequality from a Global Perspective: An Overview
Goda, Thomas
SSRN Electronic Journal, Vol. (2013), Iss.
https://doi.org/10.2139/ssrn.2486888 [Citations: 7] -
Monetary Policy, Market Structure and the Income Shares in the U.S.
Bitros, Georgios (George) C.
SSRN Electronic Journal , Vol. (2016), Iss.
https://doi.org/10.2139/ssrn.2767318 [Citations: 0] -
Labor Income Share in Asia
The Labor Share of Income Around the World: Evidence from a Panel Dataset
Guerriero, Marta
2019
https://doi.org/10.1007/978-981-13-7803-4_3 [Citations: 15] -
Income Shares Revisited
Izyumov, Alexei | Vahaly, JohnReview of Income and Wealth, Vol. 61 (2015), Iss. 1 P.179
https://doi.org/10.1111/roiw.12072 [Citations: 13] -
Global trends in relative and absolute income inequality
Goda, Thomas
Ecos de Economía, Vol. 20 (2016), Iss. 42 P.46
https://doi.org/10.17230/ecos.2016.42.3 [Citations: 8]
Abstract
The profit share—the share of factor income going to capital—has trended upwards since about the mid 1980s in most developed economies. Not all of the possible explanations for this are consistent with the timing or the cross-country pattern of the data. Our preferred explanation is that technological progress has increased the rate of obsolescence of capital goods. This induces faster churn in both capital and jobs, which endogenously puts firms in a stronger bargaining position. The effect is larger where there is stronger labour and product market regulation.
JEL Classification: E25, L51