Japan’s declining labor share attributed to conditions in growing service industries

Summary: Economists have been trying to figure out why the share of income taken by workers has been declining in many economies. While global growth has continued to make the pie bigger, the share of that pie dished out for labor has shrunk in many places. It’s an important issue, since greater inequality is usually the result when workers are getting less of the pie but the owners of the businesses they work for are taking home a bigger slice. Read the transcript https://bit.ly/2X6bBzi Read the working paper https://bit.ly/2ZJ79rH About the authors Kyoji Fukao is a professor of economics at the Institute of Economic Research of Hitotsubashi University. Cristiano Perugini is an associate professor at the University of Perugia. Know more about ADBI’s work https://bit.ly/2XDWp0E