Growiec, Jakub; McAdam, Peter; Mućk, Jakub - 2018
Labor's share of income has attracted interest in recent years reflecting its apparent decline. These falls, witnessed … optimal labor share. We address this question using a micro-founded endogenous growth model calibrated on US data. We find … that in our central calibration the socially optimal labor share is 17% (11 pp) above the decentralized equilibrium …