Analyzing the Post-COVID Decline in the U.S. Labor Share of Income
By
maureenegan
Summary
This article analyzes the post-COVID decline in the U.S. labor share of income, which measures the fraction of economic output paid to workers as wages and salaries. The labor share is currently at its lowest-ever post-war level. The authors compare the dynamics of this post-COVID decline to earlier drops in the 2000s, examining how productivity, prices, and wage growth have diverged. The piece provides economic analysis of structural shifts in income distribution following the pandemic.
Source
bskyAnalyzing the Post-COVID Decline in the U.S. Labor Share of Incomelibertystreeteconomics.newyorkfed.orgKey quotes
· 3 pulledThe labor share of income in the U.S. is currently at its lowest-ever level in the post-war period.
The labor share measures the fraction of economic output paid to workers as wages and salaries.
After much-studied drops in the 2000s, the labor share fell sharply again after the COVID pandemic.
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