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Title:Trade's impact on the labor share: Evidence from German and Italian regions PDF Logo
Authors:Buch, Claudia M.
Monti, Paola
Toubal, Farid
Issue Date:2008
Series/Report no.:IAW-Diskussionspapiere 46
Abstract:Has the labor share declined? And what is the impact of international trade? These questions are not only relevant in an international context they also matter for understanding the regional distribution of incomes in a given country. In this paper, we study two regions with trade exposures that differ from the rest of the country, and which display distinct changes in the labor share. East German and Southern Italian regions have a degree of international openness which is below the countries' averages. At the same time, there has been a more pronounced decline in the labor share in East Germany than in West Germany. In Southern Italy, the labor share has increased in recent years. We show that increased trade openness is not the main culprit behind changing labor shares.
Subjects:labor share
trade
regions
JEL:E25
F10
R10
Document Type:Working Paper
Appears in Collections:IAW-Diskussionspapiere, Institut für Angewandte Wirtschaftsforschung (IAW)

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