2026-04-20T00:35:06Zhttps://recercat.cat/oai/requestoai:recercat.cat:2072/4237652025-03-04T20:04:36Zcom_2072_98col_2072_378197
RECERCAT
author
Karanassou, Marika
author
Sala Lorda, Hector
author
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada
2010
This paper challenges the prevailing view of the neutrality of the labour income share to labour demand, and investigates its impact on the evolution of employment. Whilst maintaining the assumption of a unitary long-run elasticity of wages with respect to productivity, we demonstrate that productivity growth affects the labour share in the long run due to frictional growth (that is, the interplay of wage dynamics and productivity growth). In the light of this result, we consider a stylised labour demand equation and show that the labour share is a driving force of employment. We substantiate our analytical exposition by providing empirical models of wage setting and employment equations for France, Germany, Italy, Japan, Spain, the UK, and the US over the 1960-2008 period. Our findings show that the timevarying labour share of these countries has significantly influenced their employment trajectories across decades. This indicates that the evolution of the labour income share (or, equivalently, the wage-productivity gap) deserves the attention of policy makers.
open access Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades. https://creativecommons.org/licenses/by-nc-nd/2.5/
Treball Productivitat
Salaris
Ocupació
The Wage-Productivity gap revisited : is the labour share neutral to employment?
Working paper