The Determinants and Welfare Implications of Labor Share

Author
Sungbae An, Minsoo Han, Subin Kim, Jinhee Lee
Content Type
Policy Brief
Institution
Korea Institute for International Economic Policy (KIEP)
Abstract
The decline in labor share is recognized as a global phenomenon. Concerns have been raised that this trend will exacerbate the income inequality between business owners as capitalists and households as the labor suppliers, prompting a decline in household income and consumption, which are major driving forces for sustainable growth. Meanwhile, various policy measures have been introduced to raise the labor share, with the aim of correcting inequality and boosting growth. This study explores the determinants of labor share and analyzes the effects of these factors on the economy and social welfare, offering various interpretations and policy alternatives according to economic conditions.
Topic
Labor Issues, Inequality, Economy, Business , Welfare
Political Geography
Asia, Korea