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Federal Reserve Bank of Kansas City
Macro Bulletin
Trends in the Labor Share Post-2000
Didem Tuzemen
Thao Tran
Abstract

The labor share of income declined sharply in the United States from 2000 to 2010 but seems to have stabilized since 2010. We examine aggregate trends in the labor share and show that the 2000–10 decline was driven by declines in the fraction of income paid to workers in all industries. The stabilization in the labor share after 2010 mostly reflects an increased share of services industries income paid to workers.


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Didem Tuzemen & Thao Tran, "Trends in the Labor Share Post-2000" , Federal Reserve Bank of Kansas City, Macro Bulletin, pages 1-4, number 00070, Dec 6 2018.
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Keywords: Labor share; Income; Wages
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