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Questions and Answers
How does the shift-share decomposition methodology differ from the Olley-Pakes and Melitz-Polanec methodologies?
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.
What two components are found to contribute to the fall in the labor share?
The between-firm reallocation component and the within-firm component
What is the relationship between increases in concentration and changes in labor share among the largest firms?
Increases in concentration are associated with decreases in labor share among the largest firms.
What is the significance of the covariance term in the shift-share analysis?
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Who have documented the fall in the labor share as an international phenomenon?
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What type of data is used to explore the international evidence of the fall in labor share?
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What is the primary source of the within-firm contribution to the decline in labor share?
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What is the role of outliers in the shift-share analysis?
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What is the relationship between the between-firm reallocation component and the decline in labor share?
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What is the significance of the within-firm component in the shift-share decomposition?
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