Technology, market regulations, and labour share dynamics

O'Mahony, Mary, Vecchi, Michela ORCID: https://orcid.org/0000-0002-0129-6769 and Venturini, Francesco (2019) Technology, market regulations, and labour share dynamics. In: Labor Income Share in Asia: Conceptual Issues and the Drivers. Fields, Gary and Paul, Saumik, eds. ADB Institute Series on Development Economics (ADBISDE) . Springer, Singapore, pp. 81-101. ISBN 9789811378027, e-ISBN 9789811378034. (doi:10.1007/978-981-13-7803-4_4)

Abstract

We investigate the causes of the decline in the labor share, exploring the effect of technology vis-à-vis the role of market regulations, namely employment protection legislation (EPL), product market regulation (PMR), and intellectual property rights (IPR) protection. Our results show that, in the long run, productivity upgrades and ICT capital diffusion are major sources of the decline in the labor share. IPR protection is the only dimension of the institutional setting that affects (positively) the share of industry income accruing to labor. Our results also show that hysteresis characterizes the dynamics of the labor share in all countries. This further corroborates the idea that institutional differences are not the main source of variation in labor share movements, as the negative trend is common to countries with different regulatory settings

Item Type: Book Section
Additional Information: ISSN: 2363-9032
ESSN 2363-9040
Research Areas: A. > Business School > Economics
Item ID: 27573
Useful Links:
Depositing User: Michela Vecchi
Date Deposited: 17 Sep 2019 10:58
Last Modified: 23 Oct 2019 11:55
URI: https://eprints.mdx.ac.uk/id/eprint/27573

Actions (login required)

Edit Item Edit Item