Economics Quiz: Labor Share and Capital Prices

The shift-share decomposition gives greater weight to within-firm changes of initially larger firms, whereas the other methodologies use an unweighted mean of within-firm changes.

The between-firm reallocation component and the within-firm component

Increases in concentration are associated with decreases in labor share among the largest firms.

<p>It is a non-trivial component, but appears to be related to outliers rather than increases in concentration.</p> Signup and view all the answers

<p>Karabarbounis and Neiman (2013) and Piketty (2014)</p> Signup and view all the answers

<p>Industry and firm-level data from various OECD countries</p> Signup and view all the answers

<p>Larger firms</p> Signup and view all the answers

<p>They appear to affect the covariance term, making it sensitive to the double difference.</p> Signup and view all the answers

<p>The between-firm reallocation component contributes to the decline in labor share.</p> Signup and view all the answers

<p>It becomes more important as the analysis progresses.</p> Signup and view all the answers