10 Oct Labor and Capital in the Global Economy
- Read the accompanying article (Labor and Capital in the Global Economy, Winter 2017, Democracy Journal, by Kimberly Clausing) and answer the following questions. Limit your answers to not more than two pages (double spaced).
It is noted that “Economists focusing on the corporate sector have found that the labor share of income declined by 8 percentage points over the period 1980-2012, from 65 to 57 percent.”
a. According to the article, what are the major causes of this decline in the labor share of income? Describe each briefly.
b. Some scholars argue that this characterization is not valid, and it is impossible to verify such a decline. What are the reasons that scholars provide to invalidate such a trend?
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