I study the distribution of income across the factors of production within the canonical on-the-job search framework. I show that, by weakening the competition between employers, a mean-preserving spread of the employers' productivity distribution decreases the share of the production output...

The Agricultural Productivity Gap (APG) - the ratio of the average labor productivity in non-agriculture to that in agriculture - tends to be very large in developing countries and potentially represents misallocation of resources. This paper makes three contributions to the literature on APG....

In this second part of our study we survey the rapidly expanding empirical literature on the determinants of the functional distribution of income. Three major strands emerge: technological change, international trade, and financialization. All contribute to the fluctuations of the labor share,...

This series of working papers explores a theme enjoying a tremendous resurgence: the functional distribution of income - the division of aggregate income by factor share. This first installment surveys some landmark theories of income distribution. Some provide a technology-based account of the...

This paper examines the determinants of the income share of wage earners in the nonfinancial, private sectors of Greece since its introduction to the Eurozonein 1999. The main outcome of the integration of Greece into the Eurozone has been the financialisation of its economy, which has been...

In this paper we examine the dynamic contributions of capital accumulation, globalisation, and financialisation to the functional-personal income distribution in the US over the 1968-2014 period. We show that the labour share is affected negatively by personal inequality, capital intensity and...

In this paper, we estimate the effect of changes in capital income shares on inequality of gross household income. Using EU-SILC data covering 16 EU countries from 2005 to 2011 we find that the level of capital income shares is positively associated with the concentration of gross household...

A method is presented that allows to separate the total labor income into parts of basic labor and human capital using annual micro data. As results yearly total income shares of physical and human capital and labor are obtained for a single country. The method is applied to Germany using micro...

Micro data are used to separate the wage income of employed workers into components of basic labor and human capital. Further on the wage components of the self employed are determined taking into account their higher qualification and longer working hours. The fractions of these wage components...

As far as standard measures of income inequality are concerned, the Nordic countries rank among the most equal economies in the world. This paper studies whether and how this picture changes when the focus is on inequality of income composition, meaning the heterogeneity in individuals' factor...