IMF Working Papers

The Structural Determinants of the Labor Share in Europe

By Dilyana Dimova

March 22, 2019

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Dilyana Dimova. The Structural Determinants of the Labor Share in Europe, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The labor share in Europe has been on a downward trend. This paper finds that the decline is concentrated in manufacture and among low- to mid-skilled workers. The shifting nature of employment away from full-time jobs and a rollback of employment protection, unemployment benefits and unemployment benefits have been the main contributors. Technology and globalization hurt sectors where jobs are routinizable but helped others that require specialized skills. High-skilled professionals gained labor share driven by productivity aided by flexible work environments, while low- and mid-skilled workers lost labor share owing to globalization and the erosion of labor market safety nets.

Subject: Employment, Employment protection, Expenditure, Labor, Labor share, Unemployment benefits

Keywords: Baltics, Employment, Employment policies, Employment protection, Employment share, Europe, Further labor share erosion, Global, Globalization, Import penetration, Labor market, Labor share, Labor share come, Labor share contraction, Labor share erosion, Labor share fluctuation, Labor share growth, Labor share shrink, Labor share shrinkage, Labor share stagnation, Labor share stem, Labor share tend, Self-employment share, Share data, Share decline, Shift share analysis, Skilled worker, Technology, Unemployment benefits, Wage share, WP

Publication Details

  • Pages:

    41

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2019/067

  • Stock No:

    WPIEA2019067

  • ISBN:

    9781498302920

  • ISSN:

    1018-5941