Premium
Adjusting the Australian Labour Share for Depreciation, Housing and Other Factors, 1960–2016
Author(s) -
Trott Declan,
Vance Leo
Publication year - 2018
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12210
Subject(s) - depreciation (economics) , economics , boom , labour economics , wage share , demographic economics , human capital , economic growth , financial capital , capital formation , efficiency wage , environmental engineering , engineering , wage
We adjust published Australian labour share series by excluding depreciation and housing from total factor income, and using a range of approximations for self‐employment, business and private sector income. The resulting estimates of the net, non‐housing labour share were at approximately their long‐run averages in 2015–2016. The adjustments do, however, generate a stronger decline and recovery in the labour share during and after the mining boom. Overall, there is little sign of a long‐term decline in the labour share.