Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/44534 
Year of Publication: 
2009
Series/Report no.: 
ETLA Discussion Papers No. 1178
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
We examine the sources and micro-level mechanisms of the changes in the labor share of value added. We link the micro-level dynamics of the labor share change with that of productivity and wage growth. Using a useful variant of the decomposition method we make a distinction between the change in the average plant and the micro-level restructuring. With Finnish plant-level data covering three decades we show that micro-level restructuring is the link between the declining labor share and increasing productivity in 12 manufacturing industries of four regions, and that increased international trade is a factor underlying those shifts.
Subjects: 
Globalization
international trade
foreign ownership
micro-level restructuring
labor share
JEL: 
F16
J31
Document Type: 
Working Paper

Files in This Item:
File
Size
215.54 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.