Trends in the Distribution of Income Between Labor and Capital in Countries with a High Share of Labor in GDP

Author:

Basovskaya Elena1,Basovskiy Leonid1

Affiliation:

1. Leo Tolstoy Tula State Pedagogical University

Abstract

The work provides quantitative estimates of trends in the distribution of income between labor and capital in countries in which the share of labor in GDP exceeds the average level. The work used UN data for a set of European countries, postSoviet countries, the USA, Canada and Israel. To assess trends, linear econometric models were built depending on the share of the labor force in the GFP for the period 2012–2021. The highest level of labor share was observed in Belgium, Iceland, the Netherlands and Switzerland. The study found that Belgium, Bosnia and Herzegovina, Denmark, Spain, the Netherlands, Portugal, Finland and France have seen a decline in labor’s share of GDP. In the Netherlands and Portugal this trend is weak. Germany, Greece, Iceland, Luxembourg, the Czech Republic, Switzerland and Estonia have seen an increase in the labor share of GDP. In Germany and Switzerland this trend is weakly expressed. There are no significant trends in the redistribution of income between labor and capital in countries such as Austria, Armenia, Italy, Canada, Slovenia, the United Kingdom, the United States of America, Croatia and Sweden. Trends in the redistribution of income between labor and capital can be determined by institutional conditions in the country’s economy.

Publisher

Infra-M Academic Publishing House

Reference14 articles.

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