Post Profile






Routinisation, globalisation, and the fall in labour’s share of income

In both developing and advanced economies, labour’s share of income has been declining since the 1970s, presenting a puzzle for classical trade theory. This column proposes that the globalisation of trade and ‘routinisation’ of tasks can reconcile declining labour shares in both advanced and developing economies. Countries with higher initial exposure to routinisation and a greater increase in participation in global value chains are shown to have experienced stronger declines in the labour income share of medium-skilled workers.
read more

share

Related Posts


Labor Share, Long-Term Trends and Financial Crises

Business & Finance / Economics : Rortybomb

Peter Orzag has a column today in Bloomberg about a fascinating development, the decline in labor of income: As Kaldor’s Facts Fall, Occupy Wall Street Rises. In Economics 101, students learn that the share of national income receiv...

Globalisation and sectoral employment trends in Germany

Business & Finance / Economics : Vox

The decline of manufacturing jobs in the US has been the focus of much attention recently, with rising trade with China cited as one explanation. This column describes how the German economy has experienced a similar secular decline...

Trade globalisation in the last two centuries

Business & Finance / Economics : Vox

Historians and economists generally identify two periods of trade globalisation, the first beginning around 1870 and the second during the 1970s. The column argues that new data from 1827 onwards shows globalisation beginning as tra...

Column: When the global economy seems to brush off big risks, prudence matters

Business & Finance : The Business Desk with Paul Solman

An employee of a foreign exchange trading company in Tokyo works near monitors showing TV news on North Korea’s nuclear test on Sept. 4, 2017. Photo by REUTERS/Issei Kato August was another month during which asset markets continued...

What is the link between labour's share of income, financialisation, and income concentration?

Business & Finance / Economics : Worthwhile Canadian Initiative

Bruce Bartlett draws attention to three developments in the US economy over the past 30 years or so: The declining share of labour in national income in the US The growing 'financialisation' of the US economy The concentration of in...

Comments


Copyright © 2016 Regator, LLC