TY  - BOOK
AU  - Kaplan,Greg
AU  - Zoch,Piotr
ED  - National Bureau of Economic Research.
TI  - Markups, Labor Market Inequality and the Nature of Work
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - February 2020; Hardcopy version available to institutional subscribers
N2  - We demonstrate the importance of distinguishing between the traditional use of labor for production, versus alternative uses of labor for overhead, marketing and other expansionary activities, for studying the distribution of both factor income and labor income. We use our framework to assess the impact of changes in markups on the overall labor share and on labor income inequality across occupations. We identify the production and expansionary content of different occupations from the co-movement of occupational income shares with markup-induced changes in the labor share. We find that around one-fifth of US labor income compensates expansionary activities, and that occupations with larger expansionary content have experienced the fastest wage and employment growth since 1980. Our framework can rationalize a counter-cyclical labor share in the presence of sticky prices and can be used to study the distributional effects of demand shocks, monetary policy and secular changes in competition
UR  - https://www.nber.org/papers/w26800
UR  - http://dx.doi.org/10.3386/w26800
ER  -