Advanced

Trends in labour compensation 1970–2007: An analysis of the impacts of income distribution and economic growth in sixteen advanced economies

Söderqvist, Albin LU (2012) EKHR61 20121
Department 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)
Please use this url to cite or link to this publication:
author
Söderqvist, Albin LU
supervisor
organization
course
EKHR61 20121
year
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},
  keyword      = {wages–profits,labour compensation,economic growth},
  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},
}