Factor Shares From Household Survey Data

Banco de México
Documentos de Investigación
Banco de México
Working Papers
N◦ 2005-05
Factor Shares From Household Survey Data
Rodrigo Garcı́a-Verdú
Banco de México
October 2005
La serie de Documentos de Investigación del Banco de México divulga resultados preliminares de
trabajos de investigación económica realizados en el Banco de México con la finalidad de propiciar
el intercambio y debate de ideas. El contenido de los Documentos de Investigación, ası́ como las
conclusiones que de ellos se derivan, son responsabilidad exclusiva de los autores y no reflejan
necesariamente las del Banco de México.
The Working Papers series of Banco de México disseminates preliminary results of economic
research conducted at Banco de México in order to promote the exchange and debate of ideas. The
views and conclusions presented in the Working Papers are exclusively the responsibility of the
authors and do not necessarily reflect those of Banco de México.
Documento de Investigación
2005-05
Working Paper
2005-05
Factor Shares From Household Survey Data*
Rodrigo Garcı́a-Verdú†
Banco de México
Abstract
This paper proposes a method for estimating the factor shares using cross sectional
household survey data containing detailed information on household income by source. The
application of this method to the case of Mexico using data from every available household
survey that is representative at the national level, yields the following results: (i) factor
shares in Mexico are much closer to those in the United States than the NIPA data suggest,
and (ii) factor shares in Mexico have been relatively constant over the time period analyzed.
The paper then develops the implications of the differences between factor shares obtained
from the NIPA data and the household survey data for some areas of economic research.
Keywords: Factor Shares, National Income and Product Accounts, Household Survey Data,
Functional Distribution of Income, Growth Accounting.
JEL Classification: E25, O47, E13
Resumen
Este trabajo propone un método para estimar las participaciones factoriales utilizando
datos de corte transversal provenientes de encuestas de hogares que contienen información
detallada del ingreso por sus fuentes. La aplicación del método al caso de México utilizando
datos de todas las encuestas representativas a nivel nacional disponibles, arroja los siguientes
resultados: (i) las participaciones factoriales en México son mucho más cercanas a las de los
Estados Unidos que lo que los datos del SCN sugiere, y (ii) las participaciones factoriales en
México han sido relativamente constantes durante el periodo analizado. El trabajo desarrolla
las implicaciones de las diferencias entre las participaciones factoriales obtenidas a partir de
los datos del SCN y de las encuestas de hogares en algunas áreas de investigación económica.
Palabras Clave: Participaciones Factoriales, Sistema de Cuentas Nacionales, Datos de Encuestas Nacionales, Distribución Funcional del Ingreso, Contabilidad del Crecimiento.
*
This paper draws partly on my joint work with Regina Weber Buch. I am grateful to Benito Berber, Sara
Castellanos, Jesús Cervantes, Daniel Chiquiar, Daniel Garcés, Alejandro Gaytán, Jesús González, William
Maloney, Lorenza Martı́nez, Manuel Ramos Francia, Manuel Santos, Luis San Vicente, Camilo Tovar, Gabriel
Vera, Dorothy Walton and seminar participants at Banco de México, CIDE, ITAM, LACEA, Universidad de
Guanajuato and the Econometric Society World Congress for very helpful comments and suggestions. I am
also grateful to Marı́a Bolio, Salvador Bonilla, Susana Cazorla, Douglas Gollin, Cynthia Mendonca, Ricardo
Paes de Barros, Diego Petrecolla, Ricardo Reyes, Graciela Ruiz and Luis Suárez for their help in obtaining
the data. Oscar Budar and Othón Moreno provided outstanding research assistance.
†
Dirección General de Investigación Económica. Email: [email protected].
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<*&56 &9&.0&'0* &5382) 60%
Percent of the Labor Force
50%
40%
30%
20%
Mexico
10%
United
States
0%
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
Real GDP per capita
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80%
Gross Operating
Surplus in Mexico
Percent of GDP and of National Income
70%
Compensation of
Employees in the
United States
60%
50%
Compensation of
Employees in
Mexico
40%
30%
Corporate Profits
in the United
States
20%
10%
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
0%
Year
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1=<A723@32 /A 7<4=@;/: 3;>:=G33A E=@9 E7B6=CB / E@7BB3< 1=<B@/1B =@ E7B6 / B3;>=@/@G 1=<
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=4 A=17/: A31C@7BG 03<3IBA G73:2 / A7;7:/@ A6/@3
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E7B6 B63 @3:/B7D3 AB/07:7BG =4 B63 7<1=;3 A6/@3A =4 ;>:=G33 =;>3<A/B7=< /<2 @=AA %>3@
/B7<5 (C@>:CA 7< B63 $&LA 2/B/ (33 $ C3<B/ (/BT:7B3 23: (C0A31B=@ <4=@;/:
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.,85* 1403<*56 !*0+1403<*) &2) 2+351&0 1403<**6 &6 & 6-&5* 3+ 7-*
&'35 35(* .2 *;.(3 Verbal or
Temporary
Contract
30%
Self Employed
20%
15%
10%
Employers or
Enterpreneurs
5%
Year-Quarter
(=C@13 <1C3AB/ $/17=</: 23 ;>:3= $ $
2004-III
2004-II
2004-I
2003-IV
2003-III
2003-II
2003-I
2002-III
2002-IV
2002-II
2002-I
2001-IV
2001-III
2001-II
2001-I
2000-III
2000-IV
2000-II
1999
0%
1998
Percent of the Labor Force
25%
.,85* 2+351&0 !*(735 3+ 7-* *;.(&2 (3231< &6 & 6-&5*
3+ 7-* "37&0 $&08* ))*) 3+ 7-* (3231< Percent of Total Value Added
14%
12%
10%
8%
6%
4%
2%
0%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Year
(=C@13 C3<B/ (/BT:7B3 23: (C0A31B=@ <4=@;/: 23 :=A =5/@3A $
)6CA 57D3< B63 /11=C<B7<5 ;3B6=2=:=5G 4=::=E32 7< 1=<AB@C1B7<5 #3F71=LA
$& /<2 57D3< B63 ;/5<7BC23 =4 A3:43;>:=G;3<B /<2 7<4=@;/: 3;>:=G;3<B
7< B63 :/0=@ 4=@13 7B 7A <=B >CHH:7<5 E6G 3;>:=G33 1=;>3<A/B7=< /A / A6/@3 =4
& 7A @3:/B7D3:G A;/:: 7< #3F71=
< 4/1B B63 :=E A6/@3 =4 3;>:=G33 1=;>3<A/B7=< /<2 B63 1=@@3A>=<27<5:G
6756 A6/@3 =4 @=AA %>3@/B7<5 (C@>:CA 7< & 7A / 1=;;=< >63<=;3<=< 7<
=B63@ 1=C<B@73A 7< "/B7< ;3@71/ E7B6 A7;7:/@ 16/@/1B3@7AB71A B= #3F71= 7<1:C2
7<5 A7;7:/@ >3@ 1/>7B/ 7<1=;3 :3D3:A /<2 /11=C<B7<5 ;3B6=2=:=573A )67A 4/1B
E6716 1/< 03 A33< 7< )/0:3 0 7A /:A= 23>71B32 7< B63 4=::=E7<5 I5C@3A E6716
A6=E B63A3 A6/@3A 4=@ B63 1/A3 =4 @53<B7</ @/H7: /<2 67:3 4=@ B63 ;=AB @313<B
G3/@A 4=@ E6716 B63 $& 2/B/ /@3 /D/7:/0:3
.,85* 314*26&7.32 3+ 1403<**6 &2) 5366 4*5&7.2, !854086
&6 & 6-&5* 3+ .2 5,*27.2& 80%
70%
Gross Operating
Surplus
Percent of GDP
60%
50%
40%
Compensation of
Employees
30%
20%
10%
0%
1980
1981
1982
1983
1984
1985
1986
1987
Year
(=C@13A 7AB@70C17V< C<17=</: 23: <5@3A= 7@3117V< $/17=</: 23 C3<B/A
$/17=</:3A $$ <AB7BCB= $/17=</: 23 AB/2UAB71/ G 3<A=A $
.,85* 314*26&7.32 3+ 1403<**6 &2) 5366 4*5&7.2, !854086
&6 & 6-&5* 3+ .2 5&=.0 60%
Gross Operating
Surplus
50%
Percent of GDP
40%
Compensation of
Employees
30%
20%
10%
0%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
(=C@13A =<B/ 2/ '3<2/ 7@3B=@7/ 23 &3A?C7A/A 3>/@B/;3<B= 23 =<B/A
$/17=</7A <AB7BCB= @/A7:37@= 23 3=5@/4U/ 3 AB/2UAB71/ .,85* 314*26&7.32 3+ 1403<**6 &2) 5366 4*5&7.2, !854086
&6 & 6-&5* 3+ .2 -.0* 70%
Gross Operating
Surplus
60%
Percent of GDP
50%
40%
Compensation of
Employees
30%
20%
10%
0%
1985
1987
1989
1991
1993
1995
1997
1999
2001
Year
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7A / 4C<1B7=< =4 B63 D/@7/<13 /<2 =4 B63 A7H3 =4 B63 A/;>:3 CA32 )= B63 3FB3<B
B6/B B63 A/;>:3 A7H3A =4 B63 6=CA36=:2 AC@D3GA CA32 E3@3 16=A3< B= 3<AC@3 B63
@3>@3A3<B/B7D3<3AA =4 B63 A/;>:3 B63 AB/<2/@2 3@@=@A A6=C:2 <=B /Q31B B63 A75
<7I1/<13 =4 B63 3AB7;/B3A $3D3@B63:3AA B63 >@3D/:3<13 7< B67A BG>3 =4 AC@D3G =4
4 @3>@3A3<BA B63 @/<2=; D/@7/0:3 4=@ B=B/: 7<1=;3 E3 A3:31B B63 D/:C3A /<2 AC16
B6/B /<2 /<2 B63< I<2 B63 ;3/< 4=@ 6=CA36=:2A E6=A3
7<1=;3 :73A 7< B63 A3B 6=CA36=:2A E6= @3>=@B /< 7<1=;3 =4 H3@= 5@3/B:G 7<1@3/A3A B63 AB/<2/@2 3@@=@ =4
B63 3AB7;/B3A < =@23@ B= /22@3AA B67A 7AAC3 B63 >/>3@ >@=>=A3A B6@33 /:B3@</
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=4 B63 7<1=;3 27AB@70CB7=< /<2 7A B6CA <=B /Q31B32 0G B63 >@3D/:3<13 =4 H3@=3A
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@3A>=<23<B B63 7<B3@D73E3@ =@ B63 1=27<5 >@=13AA )63 ;=AB B@=C0:3A=;3 7A B63
1/A3 =4 <=<@3A>=<A3 0G B63 @3A>=<23<B A :=<5 /A <=<@3A>=<A3A /@3 @/<2=;
B67A A6=C:2 <=B 03 / >@=0:3; =B63@ B6/< @32C17<5 B63 3Q31B7D3 A7H3 =4 B63 A/;>:3
$3D3@B63:3AA 74 67567<1=;3 6=CA36=:2A OE6716 BG>71/::G 6/D3 / 67563@ A6/@3 =4
B637@ 7<1=;3 4@=; 1/>7B/:O /@3 :3AA :793:G B= @3A>=<2 B= B63 AC@D3G B6/< :=E
7<1=;3 6=CA36=:2A B63< B63 3AB7;/B3 =4 B63 :/0=@ 1/>7B/: A6/@3 E7:: 03 07/A32
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=@ B63 1=27<5 >@=13AA *<:3AA B63 2/B/ 53<3@/B7<5 >@=13AA =4 B67A ;3/AC@3;3<B
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=@ </B7=</: 7<1=;3 @343@ B= J=E D/@7/0:3A 4=@ / 57D3< >3@7=2 BG>71/::G / G3/@ =@
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BG>71/::G /A9 ?C3AB7=<A /0=CB B63 7<1=;3 /11@C32 2C@7<5 / >3@7=2 =4 A3D3@/:
;=<B6A 034=@3 B63 AC@D3G E67:3 7< B63 1/A3 =4 3F>3<27BC@3A B63 @343@3<13 >3@7=2
7A ;C16 ;=@3 @313<B CAC/::G / 43E E339 034=@3 B63 AC@D3G < B63 1/A3 =4 B63
$A B63 AC@D3G ?C3AB7=<</7@3 6/A / @343@3<13 >3@7=2 03BE33< =<3 /<2 A7F
;=<B6A 23>3<27<5 =< B63 ?C3AB7=< /A932
7D3< B6/B :/0=@ 7<1=;3 BG>71/::G 6/A /< 7;>=@B/<B A3/A=</: 1=;>=<3<B
B63< B63 @3AC:BA =4 B63 BE= ;3B6=2A <332 <=B 1=7<1723 C<:3AA B63 @343@3<13 >3@7=2
7A B63 A/;3 < B63 1/A3 =4 #3F71= :/0=@ 7<1=;3 7A BG>71/::G 67563@ 7< B63 :/AB
;=<B6 =4 B63 G3/@ 2C3 B= 6=:72/G@3:/B32 1=;>3<A/B7=< G3/@3<2 0=<CA3A )67A
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B= 7<B@=2C13 / A75<7I1/<B 07/A 7< B63 3AB7;/B3A
14.5.(&0
*68076
)63 4=::=E7<5 B/0:3 /<2 I5C@3 >@3A3<B B63 ;/7< @3AC:BA =4 B63 >/>3@ )/0:3
1=<B/7<A B63 B6@33 3AB7;/B3A 4=@ 3/16 =4 B63 AC@D3GA 1=<A723@32 )63 AB/<2/@2
3@@=@A /@3 7< 7B/:71A 03:=E 3/16 >=7<B 3AB7;/B3 A 1/< 03 A33< 4@=; B63 B/0:3 /<2
B63 /11=;>/<G7<5 I5C@3 4/1B=@ A6/@3A 7< #3F71= 3AB7;/B32 4@=; B63 6=CA36=:2
AC@D3G 2/B/ 6/D3 033< @3:/B7D3:G AB/0:3 =D3@ B63 >3@7=2 1=<A723@32 #=@3 7;>=@B/<B:G B63A3 A6/@3A /@3 ;C16 1:=A3@ B= B63 A6/@3A =4 23D3:=>32 1=C<
B@73A 7<1:C27<5 B63 *<7B32 (B/B3A /<2 B63 =B63@ % 1=C<B@73A B6/< B6=A3
=0B/7<32 CA7<5 B63 $& 2/B/
.,85* &'35?6 !-&5* 3+ 2(31* +531 386*-30) !859*< &7& 90%
Alfa 3
Percent of Total Income
80%
70%
Alfa 1
60%
50%
Alfa 2
40%
30%
20%
10%
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
0%
Year
(=C@13 %E< 1/:1C:/B7=<A CA7<5 2/B/ 4@=; B63 $/B7=</: <1=;3 /<2 F>3<27BC@3
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386*-30) !859*< &7& .3/@ AB7;/B3
9*5&,*
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)63 :/AB 1=:C;< 7< )/0:3 A6=EA B6/B =< /D3@/53 =D3@ B63 >3@7=2 B=
B63 A6/@3 =4 :/0=@ 7< B=B/: 7<1=;3 =0B/7<32 4@=; B63 6=CA36=:2 AC@D3G
2/B/ CA7<5 B63 I@AB BE= 3AB7;/B=@A 6/A 033< /@=C<2 E67:3 B63 A6/@3 =4
1/>7B/: 7< B=B/: 7<1=;3 6/A 033< /@=C<2 < 4/1B B63 /D3@/53 =4 B63 @3AC:BA
=0B/7<32 CA7<5 B63 I@AB BE= 3AB7;/B=@A /@3 D3@G A7;7:/@ A ;3<B7=<32 /0=D3
B63 AB/<2/@2 3@@=@A =4 B63 3AB7;/B3A /@3 27A>@=>=@B7=</B3:G :/@53 ;/7<:G 2C3 B=
B63 :/@53 4@/1B7=< =4 6=CA36=:2A B6/B @3>=@B H3@= 7<1=;3
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B63 5@=EB6 @/B3 =4 )& E63< B63 2C/: />>@=/16 7A CA32
7D3< B63 3;>7@71/: 3D723<13 >@=D7232 /0=D3 0=B6 4@=; B63 $& 2/B/ /<2
4@=; B63 6=CA36=:2 AC@D3G 2/B/ B6/B 4/1B=@ A6/@3A 6/D3 033< @3:/B7D3:G 1=<AB/<B
=D3@ B7;3 /<2 E7B6=CB :=AA =4 53<3@/:7BG 7B 7A 63:>4C: B= E=@9 E7B6 / =00
=C5:/A >@=2C1B7=< 4C<1B7=< =4 B63 4=@;
@=; B67A 3F>@3AA7=< =<3 1/< =0B/7< B63 :3D3: =4 )& /A / 4C<1B7=< =4 =CB>CB
:/0=@ /<2 1/>7B/: /A E3:: /A =4 4/1B=@ A6/@3A
< B67A 1/A3 4/1B=@ A6/@3A /@3 1=<AB/<B =D3@ B7;3 /<2 3?C/: B= B63 3F>=<3<BA
=4 :/0=@ /<2 1/>7B/: 7< B63 >@=2C1B7=< 4C<1B7=< )63 3F>@3AA7=< 4=@ B63 5@=EB6
@/B3 =4 )& /A / 4C<1B7=< =4 B63 5@=EB6 @/B3A =4 =CB>CB B63 BE= 7<>CBA /<2 B63
4/1B=@ A6/@3A 1/< 03 =0B/7<32 0G B/97<5 B63 :=5/@7B6;71 23@7D/B7D3 =4 3?C/B7=<
=@ 0G AC0AB7BCB7<5 B63 1=<AB/<B 4/1B=@ A6/@3A 7<B= 3?C/B7=< *<23@ B63 /AAC;>B7=< =4 1=<AB/<B @3BC@<A B= A1/:3 B63 3F>@3AA7=< A7;>:7I3A
4C@B63@ B=
3I<3 =CB>CB >3@ 1/>7B/ /<2 1/>7B/: >3@ 1/>7B/ /A /<2 ,3 1/< B63< @3/@@/<53 /<2 3F>@3AA B63 3?C/B7=< /0=D3 7< 7<B3<A7D3 =@ >3@ 1/>7B/
B3@;A /A
11=@27<5 B= B67A 3?C/B7=< B63 5@=EB6 @/B3 =4 )& 7A 3?C/: B= B63 5@=EB6
@/B3 =4 =CB>CB >3@ 1/>7B/ ;7<CA B63 5@=EB6 @/B3 =4 1/>7B/: >3@ 1/>7B/ E3756B32
0G B63 A6/@3 =4 1/>7B/: 7< B=B/: =CB>CB B 7A 3D723<B 4@=; B67A 3?C/B7=< B6/B
74 B63 A6/@3 =4 1/>7B/: 7A =D3@3AB7;/B32 B63< B63 5@=EB6 @/B3 =4 )& E7:: 03
C<23@3AB7;/B32
)67A 4/1B E=C:2 3F>:/7< E6G 7< #3F71= /<2 =B63@ "/B7< ;3@71/< 1=C<B@73A
B63 5@=EB6 @/B3 =4 )& 6/A 033< 4=C<2 B= 03 <35/B7D3 4=@ A3D3@/: >3@7=2A B
E=C:2 /:A= A=:D3 B63 27P1C:BG 7< 7<B3@>@3B7<5 / ACAB/7<32 4/:: 7< )& E6716
7;>:73A / M:7B3@/: 4=@53BB7<5 =4 B316<=:=5GN 7< B63 E=@2A =4 /@@= /<2 (/:/7
#/@B7< )= 3F>:=@3 B67A 7AAC3 4C@B63@ 3?C/B7=< E7:: 03 CA32 7< B63
<3FB A31B7=< B= /AA3AA B63 27Q3@3<13A 7< B63 @3AC:BA =4 B63 5@=EB6 /11=C<B7<5
3F3@17A3 CA7<5 4/1B=@ A6/@3A 4@=; B63 $& /<2 4@=; B63 6=CA36=:2 AC@D3G 2/B/
4=@ B63 1/A3 =4 #3F71=
"-* &6* 3+ *;.(3
< B63 1/A3 =4 "/B7< ;3@71/ :U/A >@=D723A / 1=;>@363<A7D3 /</:GA7A
=4 B63 A=C@13A =4 5@=EB6 4=@ A3D3< 31=<=;73A 7< B63 @357=< 7<1:C27<5 #3F71=
%<3 =4 B63 ;/7< 1=<1:CA7=<A @3/1632 7A B6/B 1/>7B/: E/A B63 ;/7< A=C@13 =4
5@=EB6 =D3@ B63 >3@7=2 7< /:: =4 B63 1=C<B@73A /</:GH32 )63 @3AC:BA
63 =0B/7<32 E3@3 :/@53:G 1=<I@;32 0G (/<B/3::/ E6= >3@4=@;32 / A7;7:/@
/</:GA7A 4=@ B63 1/A3 =4 #3F71= < >/@B71C:/@ B63 :/BB3@ 2=1C;3<BA #3F71=LA
5@=EB6 3F>3@73<13 2C@7<5 B63 >3@7=2 /<2 @3/163A A7;7:/@ 1=<1:CA7=<A
7< B63 A3<A3 B6/B 1/>7B/: /11=C<B32 4=@ ;=AB =4 B63 5@=EB6 @/B3 =4 >3@ 1/>7B/
=CB>CB < >/@B71C:/@ 63 4=C<2 B6/B 1/>7B/: >3@ 1/>7B/ /11=C<B32 4=@ 1:=A3 B=
=4 B63 5@=EB6 @/B3 =4 @3/: & >3@ 1/>7B/ =D3@ B63 >3@7=2 E67:3
)& /11=C<B32 4=@ B63 =B63@ <=B63@ 93G 4/1B 2=1C;3<B32 0G :U/A 4=@ B63 "/B7< ;3@71/< 1=C<B@73A
/</:GH32 /<2 (/<B/3::/ 7< B63 1/A3 =4 #3F71= 7A B6/B B63@3 6/A 033< / ;/8=@
A:=E2=E< 7< B63 5@=EB6 @/B3 =4 B63 @357=<LA @3/: & /4B3@ < B63 1/A3 =4
#3F71= 4@=; C<B7: @3/: & >3@ 1/>7B/ 5@3E /B /< /D3@/53 =4 >3@ /<<C; < 1=<B@/AB 4@=; C<B7: @3/: & >3@ 1/>7B/ 5@3E /B /<
/D3@/53 =4 >3@ /<<C; )63 3D=:CB7=< =4 @3/: >3@ 1/>7B/ & 7A 23>71B32
7< B63 <3FB I5C@3
)63A3 5@=EB6 @/B3A /@3 1/:1C:/B32 CA7<5 B63 2/B/ 7< B63 ,=@:2 &3<< )/0:3 +3@A7=< 0G 3AB=< (C;;3@A /<2 B3< .,85* *&0 4*5 (&4.7& .2 *;.(3 9.1
Ln of real GDP per capita
8.9
8.7
8.5
8.3
8.1
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
7.9
Year
(=C@13 ,=@:2 &3<< )/0:3 +3@A7=< 0G 3AB=< (C;;3@A /<2 B3< 7D3< B67A A6/@> A:=E2=E< 7< B63 5@=EB6 @/B3 =4 @3/: & >3@ 1/>7B/ A=;3
=4 B63 ?C3AB7=<A B6/B </BC@/::G /@7A3 /@3 ,6/B >@=2C132 B67A A:=E2=E< ,6716
4/1B=@ =@ 4/1B=@A =4 >@=2C1B7=< E3@3 @3A>=<A70:3 =@ E/A )& B63 1C:>@7B
)63 @3137D32 9<=E:3253 23@7D32 4@=; B63 5@=EB6 /11=C<B7<5 ;3B6=2=:=5G
/<2 A=C@13A =4 5@=EB6 3F3@17A3A CA7<5 B63 4/1B=@ A6/@3A 4@=; B63 $& 2/B/ 7A
BE=4=:2 7@AB 1/>7B/: 6/A 033< B63 :/@53AB 1=<B@70CB=@ B= =CB>CB 5@=EB6 7<
"/B7< ;3@71/ (31=<2 B63 A:=E2=E< =@ 4/:: 7< B63 5@=EB6 @/B3 =4 >3@ 1/>7B/
& /4B3@ E/A ;/7<:G B63 @3AC:B =4 / A6/@> 4/:: 7< B63 5@=EB6 @/B3 =4 )&
< 4/1B 4=@ A3D3@/: G3/@A B63 5@=EB6 @/B3 =4 )& 7A 4=C<2 B= 03 <35/B7D3 =B6
1=<1:CA7=<A :/@53:G @3AB =< B63 @3:/B7D3:G :/@53 7<1=;3 A6/@3 =4 1/>7B/: 7< #3F71=
/<2 =B63@ "/B7< ;3@71/< 1=C<B@73A E6716 /11=@27<5 B= B63 $& 2/B/ 6/A
033< /@=C<2 =< /D3@/53
,3 <3FB @3>3/B B63 5@=EB6 /11=C<B7<5 3F3@17A3 23A1@7032 7< B63 >@3D7=CA
A31B7=< 0CB CA7<5 B63 4/1B=@ A6/@3A =0B/7<32 4@=; B63 6=CA36=:2 AC@D3G 2/B/
)63 2/B/ 4=@ =CB>CB :/0=@ /<2 1/>7B/: 4=@ B67A 3F3@17A3 E3@3 =0B/7<32 4@=;
B63 &3<< ,=@:2 )/0:3 +3@A7=< A= 7B 1/< 03 3/A7:G @3>:71/B32
)63 B=B/:
>=>C:/B7=< 7< B63 1=C<B@G 7A CA32 /A / >@=FG 4=@ B63 :/0=@ 4=@13 E67:3 1/>7B/: 7A
(33
3AB=< (C;;3@A /<2 B3< 1=<AB@C1B32 4@=; B63 7<D3AB;3<B A3@73A CA7<5 B63 >3@>3BC/: 7<D3<B=@G ;3B6=2
A B63 <3FB B/0:3 /<2 I5C@3 A6=E B63 @3AC:BA 4@=; B63 5@=EB6 /11=C<B7<5
3F3@17A3A CA7<5 B63 $& 2/B/ /<2 B63 6=CA36=:2 AC@D3G 2/B/ AB/<2 7< A6/@>
1=<B@/AB
"&'0* !385(*6 3+ 53:7- .2 *;.(3 />7B/: (6/@3A
&3@7=2 @=EB6 '/B3A
(=C@13 %E< 1/:1C:/B7=<A CA7<5 2/B/ 4@=; B63 ,=@:2 &3<< )/0:3 +3@A7=< 0G
3AB=< (C;;3@A /<2 B3< $ &3@13<B 1=<B@70CB7=<A /@3 03:=E B63 5@=EB6 @/B3A 7< 7B/:71A
,3 /AAC;3 /< /<<C/: 23>@317/B7=< @/B3 =4 /<2 /< 7<7B7/: 1/>7B/:=C>BCB @/B7= =4
/>>@=F7;/B3:G *<23@ B63A3 /AAC;>B7=<A B63 B7;3 A3@73A 4=@ B63 <D3AB;3<B (6/@3 =4 '3/:
@=AA =;3AB71 &@=2C1B 7;>:73A /< /D3@/53 1/>7B/:=CB>CB @/B7= =4 2C@7<5 B63 >3@7=2
.,85* "37&0 &(735 53)8(7.9.7< .2 *;.(3 700
600
Labor share =
0.66
Index (1950=100)
500
400
300
Labor share =
0.34
200
100
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
0
Year
(=C@13 %E< 1/:1C:/B7=<A CA7<5 2/B/ 4@=; B63 ,=@:2 &3<< )/0:3 +3@A7=< 0G
3AB=< (C;;3@A /<2 B3< )63 BE= ;/7< 7;>:71/B7=<A =4 CA7<5 B63 4/1B=@ A6/@3A =0B/7<32 4@=; B63
6=CA36=:2 AC@D3G 2/B/ 7< B67A 5@=EB6 /11=C<B7<5 3F3@17A3 /@3 /A 4=::=EA 7@AB
1/>7B/: >3@ 1/>7B/ 6/A /11=C<B32 4=@ :3AA B6/< =4 B63 5@=EB6 @/B3 =4 @3/:
& >3@ 1/>7B/ 7< #3F71= =D3@ B63 >3@7=2 E67:3 )& 6/A /11=C<B32
4=@ /@=C<2 (31=<2 B63 A:=E2=E< =0A3@D32 7< #3F71= 2C@7<5 B63 A E/A 7<2332
;/7<:G B63 @3AC:B =4 / A6/@> 4/:: 7< B63 5@=EB6 @/B3 =4 )& /4B3@ E6716
1=<B7<C32 C> C<B7: $3D3@B63:3AA @/B63@ B6/< 3F6707B7<5 / <35/B7D3 5@=EB6
@/B3 7< B63 >3@7=2 )& 5@=EB6 E/A 7< 4/1B >=A7B7D3 #=@3=D3@ )&
5@3E /B /0=CB >3@ /<<C; 7< B63 >3@7=2 E6716 7A 67563@ B6/<
B63 /D3@/53 =4 4=@ B63 E6=:3 A/;>:3 >3@7=2
)6CA 7< 1=<B@/AB B= B63 5@=EB6 ;7@/1:3A 3F>3@73<132 0G A3D3@/: (=CB6 /AB
A7/< 31=<=;73A 2C@7<5 B63 A /<2 A E6716 E3@3 ;/7<:G B63 @3AC:B =4
1/>7B/: 233>3<7<5 7< #3F71= B63 ;/7< 2@7D3@ =4 5@=EB6 2C@7<5 B63 A/;3 >3@7=2
E/A )& )63 4/:: 7< B63 5@=EB6 @/B3 =4 >3@ 1/>7B/ & 7< #3F71= 2C@7<5 B63
LA O/ >3@7=2 1=;;=<:G 9<=E< /A B63 :=AB 231/23O E/A /:A= :/@53:G B63 @3AC:B
=4 / 4/:: 7< )& $3D3@B63:3AA B63 5@=EB6 @/B3 =4 )& E/A >=A7B7D3 7< B63 >3@7=2
/<2 5@3E @/>72:G 7< B63 >3@7=2 (33
.=C<5 4=@ 3D723<13 =< B63 (=CB6 /AB A7/< 5@=EB6 3F>3@73<13
&0.'5&7.32
#/<G 1/:70@/B32 31=<=;71 ;=23:A /<2 B63 <C;3@71/: 3F>3@7;3<BA =0B/7<32
4@=; B63; @3:G =< /< /55@35/B3 >@=2C1B7=< 4C<1B7=< BG>71/::G =4 B63 =00
=C5:/A 4=@; )6CA 4/1B=@ A6/@3A /@3 93G >/@/;3B3@A 7< B63 1/:70@/B7=< =4
AB/B71 /A E3:: /A 2G</;71 AB=16/AB71 53<3@/: 3?C7:70@7C; ;=23:A C@B63@
;=@3 B63 @3AC:BA =4 B63A3 1/:70@/B7=< 3F3@17A3A /<2 B63 <C;3@71/: 3F>3@7;3<BA
=0B/7<32 4@=; B63; /@3 =4B3< 6756:G A3<A7B7D3 B= B63 4/1B=@ A6/@3A CA32
A ;3<B7=<32 /0=D3 B63@3 7A <= E723:G /5@332 ;3B6=2=:=5G /0=CB E6716 7A
B63 ;=AB />>@=>@7/B3 ;3B6=2 B= =0B/7< B63 93G >/@/;3B3@A <33232 B= 1/:70@/B3
B63A3 ;=23:A < A=;3 7<AB/<13A B63G /@3 =0B/7<32 4@=; B63 $& 2/B/ AC16 /A
E7B6 B63 4/1B=@ A6/@3A < =B63@A B63G /@3 =0B/7<32 4@=; B63 6=CA36=:2 AC@D3G
2/B/ AC16 /A E7B6 B63 7<B3@B3;>=@/: 3:/AB717BG =4 AC0AB7BCB7=<
)63 7;>:71/B7=< =4 B63 4/1B=@ A6/@3A =0B/7<32 CA7<5 B63 6=CA36=:2 AC@D3G
2/B/ 7A B6/B B63 1=<1:CA7=<A 2@/E< 4@=; B63A3 1/:70@/B7=< 3F3@17A3A ;/G 03 37B63@
@37<4=@132 2307:7B/B32 =@ =D3@BC@<32 23>3<27<5 =< 3/16 ;=23: ,3 <3FB :==9
/B / D3@G A7;>:3 ;=23: /<2 3F>:=@3 B63 1=<A3?C3<13A =4 B63 27Q3@3<13A 7< 4/1B=@
A6/@3A =0B/7<32 E7B6 B63 $& 2/B/ /<2 B63 6=CA36=:2 AC@D3G 2/B/
&(735 !-&5*6 &2) 7-* @8(&6 &5&)3;A
< / D3@G 7<JC3<B7/: >/>3@ "C1/A /@5C32 B6/B B63 =0A3@D32 27Q3@
3<13A 7< >3@ 1/>7B/ 7<1=;3 /1@=AA 1=C<B@73A 7;>:G 27Q3@3<13A 7< @/B3A =4 @3BC@<
B= 1/>7B/: B6/B /@3 4/@ B== :/@53 B= 03 1=<A7AB3<B E7B6 =0A3@D32 1/>7B/: J=EA
C<23@ B63 /AAC;>B7=< B6/B B63@3 7A 1/>7B/: ;=07:7BG < >/@B71C:/@ 63 CA32 /
A7;>:3 <C;3@71/: 3F/;>:3 E6716 /AAC;32 / 1=;;=< 1=<AB/<B @3BC@<A B= A1/:3
B316<=:=5G /1@=AA 1=C<B@73A )67A =0A3@D/B7=< B3@;32 B63 M"C1/A &/@/2=FN
6/A :32 B= / A3@73A =4 >=B3<B7/: 3F>:/</B7=<A B6/B 1=C:2 /11=C<B 4=@ B67A />>/@3<B
>CHH:3
< B67A 3F3@17A3 =<3 0357<A E7B6 / 1=;;=< =00=C5:/A >@=2C1B7=< 4C<1
B7=< =4 B63 4=@;
AAC;7<5 1=;>3B7B7D3 4/1B=@ ;/@93BA B63 @/B3 =4 @3BC@< B= 1/>7B/: ;CAB
3?C/: B63 ;/@57</: >@=2C1B =4 1/>7B/:
(C0AB7BCB7<5 4=@ 1/>7B/: 4@=; 3?C/B7=< =<3 @3/163A /< 3F>@3AA7=< 4=@
B63 @/B3 =4 @3BC@< =< 1/>7B/: /A / 4C<1B7=< =<:G =4 =CB>CB >3@ 1/>7B/
(33 4=@ 3F/;>:3 !36=3 /<2 (3@@/ /<2 !36=3 /<2 !36=3 / 0
)63 ;=23:A 7< B63A3 >/>3@A /@3 1/:70@/B32 CA7<5 B63 4/1B=@ A6/@3A =0B/7<32 CA7<5 B63 $&
2/B/ 4@=; #3F71= 23A>7B3 B63 A75<7I1/<B 27Q3@3<13A E7B6 B63 >/@/;3B3@A =0B/7<32 CA7<5 B63
$& 2/B/ 4@=; B63 *(
(33 4=@ 3F/;>:3 3@5=37<5 !36=3 !36=3 /<2 (=B= / 0 )63 ;=23: 7< B63A3
>/>3@A 7A 1/:70@/B32 CA7<5 /A 4/1B=@ A6/@3A B63 BG>71/: >/@/;3B3@A =0B/7<32 CA7<5 B63 $&
2/B/ 4@=; 1=C<B@73A E7B6 6756 >3@ 1/>7B/ 7<1=;3 AC16 /A B63 *(
7D3< B63 /AAC;>B7=< =4 / 1=;;=< B316<=:=5G /1@=AA 1=C<B@73A B63 /0=D3
3F>@3AA7=< 7;>:73A B6/B B63 @/B7= =4 B63 @/B3A =4 @3BC@< B= 1/>7B/: 03BE33< BE=
1=C<B@73A /<2 7A / 4C<1B7=< =4 B63 @/B7= =4 =CB>CBA >3@ 1/>7B/ /<2 B63 1=;
;=< A6/@3 =4 1/>7B/: 7< =CB>CB :B6=C56 "C1/A /AAC;32 B63 A/;3 B316<=:=5G /1@=AA 1=C<B@73A 7< 67A <C
;3@71/: 3F/;>:3 63 /D=7232 B63 7AAC3 =4 B63 27Q3@3<13A 7< 4/1B=@ A6/@3A =0B/7<32
4@=; B63 $& 2/B/ 0G B/97<5 / A7;>:3 /D3@/53 =4 A6/@3A 7< <27/ /<2 B63
*( )67A 7;>:717B:G /AAC;3A B6/B <37B63@ 1=C<B@GLA A6/@3A /@3 1=@@31B /<2 CA3A
7<AB3/2 /< M/D3@/53N B316<=:=5G
)63 ;/7< 7;>:71/B7=< =4 4/1B=@ A6/@3A =0B/7<32 CA7<5 B63 6=CA36=:2 AC@D3G
2/B/ 7A B6/B 74 B63A3 A6/@3A /@3 7< 4/1B D3@G A7;7:/@ /1@=AA 1=C<B@73A B63< B63
"C1/A &/@/2=F 031=;3A 3D3< 6/@23@ B= @3A=:D3 )67A 7A 74 4/1B=@ A6/@3A /1@=AA
1=C<B@73A /@3 A7;7:/@ /<2 B63G /@3 /1BC/::G 1:=A3@ B= B6=A3 =4 6756 >3@ 1/>7B/
7<1=;3 1=C<B@73A B63< B63 >/@/2=F ;756B 03 6/@23@ B= A=:D3 A7<13 B63 7;>:732
27Q3@3<13A 7< @/B3A =4 @3BC@< /@3 3D3< :/@53@ B6/< >@3D7=CA:G =0B/7<32
)= 7::CAB@/B3 B67A >=7<B E3 =0B/7< B63 27Q3@3<13A 7< @/B3A =4 @3BC@< B= 1/>7B/:
7;>:732 0G B63 =0A3@D32 27Q3@3<13A 7< @3/: =CB>CB >3@ E=@93@ 7< B63 *<7B32
(B/B3A #3F71= /<2 <27/ :: B63 2/B/ /@3 =0B/7<32 4@=; B63 &3<< ,=@:2 )/0:3
+3@A7=< /<2 1=@@3A>=<2 B= /D3@/53A 2C@7<5 B63 >3@7=2 "&'0* .B*5*2(*6 .2 &7*6 3+ *7852 140.*) '< 7-* '6*59*)
.B*5*2(*6 .2 *&0 87487 *5 %35/*5 '*7:**2 7-* #! &2)
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4*5 (&4.7& .2 7-* #2.7*) !7&7*6 100%
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Canada
80%
Percent
70%
Europe
60%
Japan
50%
NICs
40%
30%
20%
Latin America
Asean 4
10%
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
0%
Year
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