Trends in labour compensation 1970–2007: An analysis of the impacts of income distribution and economic growth in sixteen advanced economies
(2012) EKHR61 20121Department of Economic History
- Abstract
- This thesis takes a new look at the determinants of the growth in labour compensation since the 1970s. A number of studies have shown that, over the past few decades, income has shifted dramatically from labour to capital, not the least in Europe. Kliman (2011), however, who looks at the corporate sector in the US, maintains that the labour share has remained constant relative to property income and stresses that analyses of the relationship between wages and profits ought to take into account both total compensation to employees and the costs associated with depreciation of fixed assets. The present study extends Kliman’s analysis to other advanced economies by employing several different measures of income distribution. It also evaluates... (More)
- This thesis takes a new look at the determinants of the growth in labour compensation since the 1970s. A number of studies have shown that, over the past few decades, income has shifted dramatically from labour to capital, not the least in Europe. Kliman (2011), however, who looks at the corporate sector in the US, maintains that the labour share has remained constant relative to property income and stresses that analyses of the relationship between wages and profits ought to take into account both total compensation to employees and the costs associated with depreciation of fixed assets. The present study extends Kliman’s analysis to other advanced economies by employing several different measures of income distribution. It also evaluates the relative importance of distribution and economic growth by comparing the magnitudes of change. The results suggest that shifts in distribution – from labour to capital – are only modest when depreciation costs are accounted for and that the rate of economic growth is a far more important factor determining labour compensation. (Less)
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http://lup.lub.lu.se/student-papers/record/2861473
- author
- Söderqvist, Albin LU
- supervisor
- organization
- course
- EKHR61 20121
- year
- 2012
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- wages–profits, labour compensation, economic growth
- language
- English
- id
- 2861473
- date added to LUP
- 2012-09-10 16:05:31
- date last changed
- 2012-09-10 16:05:31
@misc{2861473, abstract = {{This thesis takes a new look at the determinants of the growth in labour compensation since the 1970s. A number of studies have shown that, over the past few decades, income has shifted dramatically from labour to capital, not the least in Europe. Kliman (2011), however, who looks at the corporate sector in the US, maintains that the labour share has remained constant relative to property income and stresses that analyses of the relationship between wages and profits ought to take into account both total compensation to employees and the costs associated with depreciation of fixed assets. The present study extends Kliman’s analysis to other advanced economies by employing several different measures of income distribution. It also evaluates the relative importance of distribution and economic growth by comparing the magnitudes of change. The results suggest that shifts in distribution – from labour to capital – are only modest when depreciation costs are accounted for and that the rate of economic growth is a far more important factor determining labour compensation.}}, author = {{Söderqvist, Albin}}, language = {{eng}}, note = {{Student Paper}}, title = {{Trends in labour compensation 1970–2007: An analysis of the impacts of income distribution and economic growth in sixteen advanced economies}}, year = {{2012}}, }