Dividing the Pie: Firm-Level Determinants of the Labor Share

Siegenthaler, Michael; Stucki, Tobias (2015). Dividing the Pie: Firm-Level Determinants of the Labor Share ILR Review, 68(5), pp. 1157-1194. 10.1177/0019793915593952

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The authors are the first to study the factors determining labor’s share of income on the level of the individual firm, employing an unusually informative panel data set. The empirical examination is concerned with Switzerland, which stands out as one of the very few developed countries with a stable labor share. Broadly confirming results from previous cross-country and industry-level studies, the authors find that the main factor decreasing the labor share between 2001 and 2010 was the increase in the firm’s share of workers using information and communication technology. The main reasons why Switzerland’s labor share remained almost constant are the counteracting effects of a relatively slow rate of technological progress in 1980 to 1995 and sectoral reallocation toward industries with above-average labor shares.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Institute for Sustainable Business Business School
Name:	Siegenthaler, Michael and Stucki, Tobias0000-0002-2400-0107
Language:	English
Submitter:	Tobias Stucki
Date Deposited:	29 Jan 2019 14:36
Last Modified:	18 Dec 2020 13:27
Publisher DOI:	10.1177/0019793915593952
Uncontrolled Keywords:	Labor share, factor income distribution, firm-level analysis
ARBOR DOI:	10.24451/arbor.84
URI:	https://arbor.bfh.ch/id/eprint/84