Fair Shares?

The Cleveland Fed examines the declining share of labour income in US GDP. Part of the explanation is cyclical, especially the lacklustre performance of employment compared with previous recoveries. However, structural factors are also playing a role, notably:  reduced employee bargaining power, increased globalisation and the rise in capital productivity connected with improvements in information and communication technologies… Behind the Decline in Labor’s Share of Income, FRB Cleveland, Economic Trends, Feb 2012