Technology, market regulations, and labour share dynamics

Book chapter

O'Mahony, M., Vecchi, M. and Venturini, F. 2019. Technology, market regulations, and labour share dynamics. in: Fields, G. and Paul, S. (ed.) Labor Income Share in Asia: Conceptual Issues and the Drivers Springer Singapore. pp. 81-101
Chapter titleTechnology, market regulations, and labour share dynamics
AuthorsO'Mahony, M., Vecchi, M. and Venturini, F.
Abstract

We investigate the causes of the decline in the labor share, exploring the effect of technology vis-à-vis the role of market regulations, namely employment protection legislation (EPL), product market regulation (PMR), and intellectual property rights (IPR) protection. Our results show that, in the long run, productivity upgrades and ICT capital diffusion are major sources of the decline in the labor share. IPR protection is the only dimension of the institutional setting that affects (positively) the share of industry income accruing to labor. Our results also show that hysteresis characterizes the dynamics of the labor share in all countries. This further corroborates the idea that institutional differences are not the main source of variation in labor share movements, as the negative trend is common to countries with different regulatory settings

Page range81-101
Book titleLabor Income Share in Asia: Conceptual Issues and the Drivers
EditorsFields, G. and Paul, S.
PublisherSpringer Singapore
SeriesADB Institute Series on Development Economics (ADBISDE)
ISBN
Hardcover9789811378027
Electronic9789811378034
Publication dates
Print01 Jan 2019
Online10 Aug 2019
Publication process dates
Deposited17 Sep 2019
Output statusPublished
Additional information

ISSN: 2363-9032
ESSN 2363-9040

Digital Object Identifier (DOI)https://doi.org/10.1007/978-981-13-7803-4_4
LanguageEnglish
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