Development and the Labor Share

• Tác giả: Paul Maarek
• Ngôn ngữ: eng
• Ký hiệu phân loại: 331.1 Labor force and market
• Thông tin xuất bản: Published by Oxford University Press on behalf of the World Bank, 2021
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 307295
• Chủ đề: 1. DEVELOPMENT; 2. DUAL LABOR MARKET; 3. INCOME DISTRIBUTION; 4. INFORMAL SECTOR; 5. LABOR SHARE

Tóm tắt

A U-shaped relationship between development and the labor share of income is brought to light. To do so, a panel dataset on the labor share in the manufacturing sector of developing countries is exploited. This dataset has greater coverage than the ones of previous studies focusing on developing countries. These data are also available at the disaggregated level for 28 manufacturing subsectors. This allows us to show that the U-shaped pattern of the labor share is also observed at the subsector level, suggesting that it does not correspond to reallocation forces across manufacturing subsectors during the development process. Standard theories of development economics that feature duality in the labor market easily generate such a pattern.