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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration / Gene M. Grossman, Elhanan Helpman, Ezra Oberfield, Thomas Sampson.
- Format:
- Book
- Author/Creator:
- Grossman, Gene M.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23853.
- NBER working paper series no. w23853
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Productivity Slowdown and the Declining Labor Share
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early postwar period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the U.S. labor share.
- Notes:
- Print version record
- September 2017.
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