We propose a theory-based adjustment to the labor income share to correct for the self-employment bias. Through a two-sector neoclassical framework with agriculture and non-agriculture, we derive the productivity-adjusted aggregate labor income share in terms of the agricultural productivity...

Despite steady growth of the literature on labor income share, empirical studies are mostly limited to country-level analyses. At the sectoral level, data on labor income share are available only for advanced countries. This paper overcomes this constraint and provides some preliminary outcomes...