The relative stability of aggregate labor share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of sectoral labor shares. We present a two-sector (manufacturing and services) model with induced innovation that can...

We explore the relationship between union density and labor shares using panel data on 35 industries, spanning the entire US economy, for the years 1983 through 2005. For the full sample, a standard deviation increase in union membership rates is associated with an increase in an industry’s...

We study the effect of the upsurge of natural resources income from the commodity price boom of the 2000s on the functional distribution of income. To do so, we build a general equilibrium model of Dutch disease that characterizes how natural resource windfalls affect equilibrium factor shares....