The Effect of Exports on Labor Share: A Semiparametric Approach Using Chinese Manufacturing Panel Data

<p><em>In China’s present economic development, factor misallocation and labor’s low income-share both are important and interrelated, with factor misallocation being an important reason for the decline in China’s labor income-share. Theoretical modeling demonstrates that if capital-labor is substitutable, the factor misallocation will lead to a decline in labor income-share. Empirical studies, using 2001-2013 provincial panel data show that factor misallocation significantly reduces labor income-share, even after controlling for other factors that affect the labor-share. The conclusion is both significant and robust. Therefore, economic policy which optimizes factor allocation will improve labor’s income-share.</em></p>

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THE IMPACTS OF GLOBALIZATION ON THE LABOR SHARE: EVIDENCE FROM ASIA

The Singapore Economic Review ◽

10.1142/s0217590820440038 ◽

2020 ◽

Vol 65 (supp01) ◽

pp. 57-73

Author(s):

XIAOSHAN HU ◽

GUANGHUA WAN ◽

JING WANG

Keyword(s):

Developing Countries ◽

Panel Data ◽

Income Inequality ◽

World Wide ◽

Trade Openness ◽

Labor Income ◽

Significant Determinant ◽

Outward Fdi ◽

Labor Share ◽

The Impact

The decline in the share of labor income — an indicator of functional income distribution — has contributed to rising income inequality world-wide. Despite a growing literature, little is known about the effects of globalization on the labor share or inequality in Asia where some of the economies are most globalized. Applying fixed-effect regressions to panel data from 29 Asian economies over the period from 1980 to 2014, we focus on the impacts of globalization on the labor share in Asia where globalization is measured by trade openness and FDI. The modeling results show that trade openness is a significant determinant of the labor share. More specifically, the impact of export is significantly negative and the impact of import is positive. In terms of FDI, the coefficient of the inward FDI is significantly positive and that of the outward FDI is significantly negative in developing countries only.

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Financialization and Neoliberalism and the Fall in the Labor Share: A Panel Data Econometric Analysis for the European Union Countries

Review of Radical Political Economics ◽

10.1177/0486613418807286 ◽

2019 ◽

Vol 51 (3) ◽

pp. 383-417

Author(s):

Ricardo Barradas

Keyword(s):

European Union ◽

Panel Data ◽

Technological Progress ◽

Shareholder Value ◽

Value Orientation ◽

Output Growth ◽

Labor Share ◽

Financial Activity ◽

General Government ◽

European Union Countries

This paper conducts an empirical analysis of the relationship between financialization and neoliberalism and the labor share using panel data composed of twenty-seven European Union countries over nineteen years (from 1995 to 2013). Adopting a Kaleckian perspective, framed in the post-Keynesian literature, financialization and neoliberalism exert a negative influence on the labor share through three different channels: the change in the sectorial composition of economies (the increasing importance of financial activity and the decreasing importance of general government activity), the proliferation of shareholder value orientation, and the deterioration of general workers’ bargaining power. We estimate a labor share equation with the traditional variables (lagged labor share, technological progress, globalization, education, and output growth) and four further measures of financialization and neoliberalism (financial activity, general government activity, shareholder value orientation, and the trade union density rate). The findings show a disruptive relationship between financialization and neoliberalism and the labor share in European Union countries, mainly through the channels of general government activity and shareholder value orientation. It is also found that financialization and neoliberalism have contributed to a fall in the labor share in European Union countries. The technological progress was the main driver of the fall in the labor share in European Union countries, while the output growth was the main supporter. This suggests that the trend of decline in the labor share could intensify in the future taking into account the fears of potential secular stagnation in the current era of financialization and neoliberalism. JEL Classification: C23, D33, E25, E44

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The labor share and income inequality: some empirical evidence for the period 1990-2015

Applied Economic Analysis ◽

10.1108/aea-04-2020-0028 ◽

2020 ◽

Vol 28 (84) ◽

pp. 173-195

Author(s):

Iñaki Erauskin

Keyword(s):

Labor Market ◽

Panel Data ◽

Income Inequality ◽

Gini Coefficient ◽

Content Type ◽

Labor Share ◽

Income Share ◽

The Gini Coefficient ◽

The Impact ◽

The Relationship

Purpose The purpose of this paper is to analyze empirically the relationship between the labor share and income inequality, as measured by the Gini coefficient and by the income shares for different quintiles, during the period 1990–2015 for 62 developed and developing countries. Design/methodology/approach This study uses panel data techniques to analyze empirically the relationship between the labor share and income inequality. Findings This paper finds that a lower labor share is associated with a higher Gini coefficient. A lower labor share is found to be strongly associated with a smaller income share for the lowest two quintiles and larger income share for the highest quintile and weakly associated with a smaller income share for the third and fourth quintiles. Moreover, this paper finds that the lower the quintile, the stronger the impact of the labor share on the income share of the quintile. Social implications Policymakers should take into account the evolution of the labor share. Public policies that improve labor market outcomes, such as those aimed to promote participation in the labor market and strengthen the human capital of low-income groups, seem necessary to prevent the rise in economic inequalities. Moreover, as the digital transformation of society progresses, policies to promote skill deepening may have an important role in reversing excessive inequalities. Originality/value How changes in the labor share are associated with changes in the Gini coefficient, and how this is driven by income shares for different quintiles, for a broad range of countries during the most recent period, has not been comprehensively studied using panel data techniques.

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The Spatial Structure of Farmland Values: A Semiparametric Approach

Agricultural and Resource Economics Review ◽

10.1017/age.2017.35 ◽

2018 ◽

Vol 47 (3) ◽

pp. 568-591 ◽

Cited By ~ 3

Author(s):

Haoying Wang

Keyword(s):

Panel Data ◽

Spatial Structure ◽

Spatial Competition ◽

Statistical Tests ◽

Competition Theory ◽

Semiparametric Approach ◽

Out Of Sample ◽

Spatial Weights Matrix ◽

Spatial Autoregressive ◽

Farmland Values

Controlling for spatial heterogeneity and spatial dependence in farmland valuation models has gained substantial attention in recent literature. This paper proposes to derive the spatial structure of farmland values endogenously and semiparametrically based on the spatial competition theory. The paper assembles panel data of Pennsylvania county level farmland values between 1982 and 2012. A spatial autoregressive panel data model with spatial weights matrix endogenously incorporated is estimated. Out of sample predictions and non-nested statistical tests for model selection suggest that the fit and the predictability of hedonic farmland valuation models can be greatly improved.

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