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Dispersion, Markup and Labour Share

There has been a surge of interest in investigating the evolution of labour share and markups in US and across the world. A number of studies like Karabarbounis and Neiman (2013), Autor et al. (2017) have documented a decline in labour share in United States and other economies. Dao et al. (2017) has documented a decline in labour share in a
number of countries, including India, the economy of interest for the current study. We use a comprehensive rm level data, Prowess, to document that there is a secular decline in labour share from 1990 till 2010. Thus with respect to the changes in labour share, India follows the experiences of United States and other developed economies.

Project Team
Srinivasan Murali
Sponsor
IIM Bangalore
Select Project Type
Ongoing Projects
Project Status
Ongoing (Initiated in September 2019)
Funded Projects Functional Area
Economics & Social Science

Dispersion, Markup and Labour Share

Project Team: Srinivasan Murali
Sponsor: IIM Bangalore
Project Status: Ongoing (Initiated in September 2019)
Area: Economics & Social Science
Abstract:

There has been a surge of interest in investigating the evolution of labour share and markups in US and across the world. A number of studies like Karabarbounis and Neiman (2013), Autor et al. (2017) have documented a decline in labour share in United States and other economies. Dao et al. (2017) has documented a decline in labour share in a
number of countries, including India, the economy of interest for the current study. We use a comprehensive rm level data, Prowess, to document that there is a secular decline in labour share from 1990 till 2010. Thus with respect to the changes in labour share, India follows the experiences of United States and other developed economies.