Labor Share Decline and Intellectual Property Products Capital

27 Pages Posted: 10 Jan 2015 Last revised: 5 Mar 2016

See all articles by Dongya Koh

Dongya Koh

University of Arkansas - Department of Economics

Raül Santaeulàlia-Llopis

UAB and Barcelona GSE

Yu Zheng

Queen Mary University of London

Date Written: January 1, 2016

Abstract

We study the behavior of the US labor share over the past 65 years. We find that intellectual property products (IPP) capital entirely accounts for the observed decline of the US labor share, which otherwise is secularly constant for structures and equipment capital. The decline of the labor share reflects that the US is undergoing a transition to a more IPP capital-intensive economy. This result has essential implications for the US macroeconomic model.

Keywords: Labor Share, Intellectual Property Products, Capital, 1999- and 2013-BEA Revision

JEL Classification: E01, E22, E25

Suggested Citation

Koh, Dongya and Santaeulalia-Llopis, Raul and Zheng, Yu, Labor Share Decline and Intellectual Property Products Capital (January 1, 2016). Available at SSRN: https://ssrn.com/abstract=2546974 or http://dx.doi.org/10.2139/ssrn.2546974

Dongya Koh

University of Arkansas - Department of Economics ( email )

Fayetteville, AR 72701
United States

HOME PAGE: http://https://sites.google.com/site/dongyakoh/home

Raul Santaeulalia-Llopis (Contact Author)

UAB and Barcelona GSE ( email )

Plaza Civica, s/n
Bellaterra, Barcelona 08193
Spain

HOME PAGE: http://r-santaeulalia.net

Yu Zheng

Queen Mary University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

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