The Structural Determinants of the Labor Share in Europe

The labor share in Europe has been on a downward trend. This paper finds that the decline is concentrated in manufacture and among low- to mid-skilled workers. The shifting nature of employment away from full-time jobs and a rollback of employment protection, unemployment benefits and unemployment b...

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Bibliographic Details
Main Author: Dimova, Dilyana
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2019
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Structural Determinants of the Labor Share in Europe  |c Dilyana Dimova 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2019 
300 |a 41 pages 
651 4 |a Greece 
653 |a Wages, Compensation, and Labor Costs: General 
653 |a Unemployment Insurance 
653 |a Wages 
653 |a Unemployment insurance 
653 |a Employment 
653 |a Macroeconomics 
653 |a Diffusion Processes 
653 |a Income economics 
653 |a Public Finance 
653 |a Employment protection 
653 |a Unemployment 
653 |a Public finance & taxation 
653 |a Manpower policy 
653 |a Labor Economics: General 
653 |a Labor Contracts 
653 |a Labor economics 
653 |a Technological Change: Choices and Consequences 
653 |a Wage Level and Structure 
653 |a Aggregate Factor Income Distribution 
653 |a Wage Differentials 
653 |a Severance Pay 
653 |a Unemployment benefits 
653 |a Intergenerational Income Distribution 
653 |a Aggregate Human Capital 
653 |a Labor share 
653 |a Aggregate Labor Productivity 
653 |a Plant Closings 
653 |a Expenditure 
653 |a Labour 
653 |a Economic theory 
653 |a Globalization: Labor 
653 |a Labor 
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520 |a The labor share in Europe has been on a downward trend. This paper finds that the decline is concentrated in manufacture and among low- to mid-skilled workers. The shifting nature of employment away from full-time jobs and a rollback of employment protection, unemployment benefits and unemployment benefits have been the main contributors. Technology and globalization hurt sectors where jobs are routinizable but helped others that require specialized skills. High-skilled professionals gained labor share driven by productivity aided by flexible work environments, while low- and mid-skilled workers lost labor share owing to globalization and the erosion of labor market safety nets