Globalization, Structural Transformation, and the Labor Income Share

Ken Suzuki*, Yoko Oishi, Saumik Paul

*Corresponding author for this work

Research output: Chapter in Book/Conference proceedingChapterpeer-review

Abstract

This paper provides novel empirical evidence on the role of trade and structural transformation as potential drivers of the labor income share. Using cross-country data, both at the national and sectoral level, we find that trade openness is negatively correlated with the labor income share. The findings are robust across national and disaggregated levels, and across different model specifications. However, the relationship between the process of structural transformation and labor income share is at best mixed. We also find weak evidence that skill-biased structural transformation is likely to be positively correlated with the share of labor income predominantly in the services sectors.
Original languageEnglish
Title of host publicationLabor Income Share in Asia: Measurement, Drivers, and Policy
EditorsGary Fields, Saumik Paul
Place of PublicationSingapore
PublisherSpringer Singapore
Pages103–150
Number of pages48
ISBN (Electronic)9789811378034
ISBN (Print)9789811378027
DOIs
Publication statusPublished - 24 Aug 2019

Publication series

NameADB Institute Series on Development Economics
PublisherSpringer
ISSN (Print)2363-9032
ISSN (Electronic)2363-9040

Keywords

  • labor income share
  • structural transformation
  • globalization

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