Full Citation

Title: Understanding the decline in the U.S. labor share: Evidence from occupational tasks

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 00142921

DOI: 10.1016/j.euroecorev.2018.07.005

NSFID:

PMCID:

PMID:

Abstract: In this paper, I provide empirical evidence linking the decline in the labor share to the replacement of occupations with substantial routine task content. Using cross-industry variation, I show that the overall labor share decline is driven by the replacement of occupations specializing in routine tasks. I further find that the accelerated decline in the labor share since 2000 is associated with the replacement of higher skill occupations with substantial routine task content. Finally, I estimate the effects of increased import competition on the labor share decline and how this relates to the replacement of occupational tasks. While increased import competition plays a significant role in explaining the overall labor share decline and works through replacing routine occupations, it cannot account for the accelerated labor share decline and replacement of higher skill occupations post-2000.

Url: https://www.sciencedirect.com/science/article/pii/S0014292118301119

Url: https://linkinghub.elsevier.com/retrieve/pii/S0014292118301119

User Submitted?: No

Authors: vom Lehn, Christian

Periodical (Full): European Economic Review

Issue:

Volume: 108

Pages: 191-220

Data Collections: IPUMS USA, IPUMS CPS

Topics: Labor Force and Occupational Structure, Land Use/Urban Organization, Other

Countries: