Global Labor Share Decline: Real Wage Reduction from Monetary Expansion
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Karabarbounis and Neiman (2014) noted a global decline in labor income share since the 1980s. Nekarda and Ramey (2020) and Cantore et al. (2021) suggested that monetary expansion contributes to a countercyclical labor share. This study uses cross-country panel regressions to examine the impact of monetary expansion on labor share, controlling for technological advances, globalization, and financialization. The results indicate that increased money supply significantly lowered the relative factor price component of labor share, mainly through a reduction in real wages. This implies that expansionary monetary policy during crises like COVID-19 could impact factor income distribution.
Abstract
Karabarbounis and Neiman (2014) noted a global decline in labor income share since the 1980s. Nekarda and Ramey (2020) and Cantore et al. (2021) suggested that monetary expansion contributes to a countercyclical labor share. This study uses cross-country panel regressions to examine the impact of monetary expansion on labor share, controlling for technological advances, globalization, and financialization. The results indicate that increased money supply significantly lowered the relative factor price component of labor share, mainly through a reduction in real wages. This implies that expansionary monetary policy during crises like COVID-19 could impact factor income distribution.
참고문헌 (26)
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