On the Optimal Labor Income Share

• Autorzy: Jakub Growiec , Peter McAdam , Jakub Mućk
• Języki publikacji: EN

Abstrakty

EN

Labor's share of income has attracted interest in recent years reflecting its apparent decline. These falls, witnessed across many countries, are usually deemed undesirable. Any such assertion, however, begs the question of what is the socially optimal labor share. We address this question using a micro-founded endogenous growth model calibrated on US data. We find that in our central calibration the socially optimal labor share is 17% (11 pp) above the decentralized equilibrium, calibrated to match the average observed in history. We also study the dependence of both long-run growth equilibria on model parameters and relate our results to Piketty's "laws of Capitalism". Finally, we demonstrate that cyclical movements in factor income shares are socially optimal and that the decentralized equilibrium typically does not generate excess volatility. (original abstract)

Słowa kluczowe

EN

Factors of economic growth; Income division; Labour income; Endogenous growth; Social optimum

PL

Czynniki wzrostu gospodarczego; Podział dochodów; Dochody z pracy; Wzrost endogeniczny; Optimum społeczne

• Czasopismo: Collegium of Economic Analysis SGH - Working Papers
• Rocznik: 2018
• Numer: nr 31
• Strony: 35

Twórcy

autor

Jakub Growiec

• Warsaw School of Economics, Poland; National Bank of Poland

autor

Peter McAdam

• European Central Bank

autor

Jakub Mućk

• Warsaw School of Economics, Poland; National Bank of Poland

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