Science, innovation, knowledge and digital technologies have played a fundamental role in the growth potential, social inclusion and environmental sustainability of countries in recent decades, and have become even more important in the context of the crisis caused by the coronavirus disease...

Existing studies on the downward trend in the labor share of income mostly focus on changes within individual countries. I document, however, that half of the global decline in the labor share of income can be traced to the relocation of activities between countries. I develop a two-country...