Labor Share Decline and Intellectual Property Products Capital

Recognition Program

Authors: Dongya Koh, Raül Santaeulàlia-Llopis and Yu Zheng

Econometrica, Vol. 88, No 6, 2609-2628, November, 2020

We study the behavior of the US labor share over the past 90 years. We find that theobserved decline of the labor share is entirely explained by the capitalization of intellectualproperty products in the national income and product accounts.

This paper originally appeared as Barcelona School of Economics Working Paper 927
This paper is acknowledged by the Barcelona School of Economics Recognition Program