Labor Share of Income Drops

An interesting chart on the trend in labor share of income, via TalkingPointsMemo:

Since this has been going on for a decade, it seems to reflect structural rather than cyclical factors. I think it's driven by the Information Age and automation, which reduces demand for labor and therefore its share of income. One or more of the following might reverse the trend:

• More investment, more capital formation, making labor scarcer relative to capital.
• Large-scale retraining of workers, and re-orientation of the education system to the skills that are most needed today.
• Strong and sustained economic growth.

Comments

[belstaff jackets]

Since this has been going on for a decade, it seems to reflect structural rather than cyclical factors.

[north face fleece]

I am very happy to be here because this is a very good site that provides lots of information.

[snow boot]

Who can for a moment doubt but that health is more likely to return when the path to the acquirement

[Elliptical reviews]

No offense, but if there's a facebook like button, it'll be much easier for me to share.