Labor Share Decline and Intellectual Property Products Capital
27 Pages Posted: 10 Jan 2015 Last revised: 5 Mar 2016
Date Written: January 1, 2016
We study the behavior of the US labor share over the past 65 years. We find that intellectual property products (IPP) capital entirely accounts for the observed decline of the US labor share, which otherwise is secularly constant for structures and equipment capital. The decline of the labor share reflects that the US is undergoing a transition to a more IPP capital-intensive economy. This result has essential implications for the US macroeconomic model.
Keywords: Labor Share, Intellectual Property Products, Capital, 1999- and 2013-BEA Revision
JEL Classification: E01, E22, E25
Suggested Citation: Suggested Citation