The Impact of Trade on Labor Share in US Industries

The ratio of payroll to sales.

Negative.

To estimate the relationship between the change in labor share and the change in industrial concentration.

<p>A firm is the sum of all establishments that belong to the same parent company and industry.</p> Signup and view all the answers

<p>To control for time-specific effects.</p> Signup and view all the answers

<p>KLEMS (industry level panel dataset)</p> Signup and view all the answers

<p>It allows for the standard errors to be correlated over time.</p> Signup and view all the answers

<p>To construct adjusted measures of industry concentration that account for changes in the size of the domestic market</p> Signup and view all the answers

<p>Time-consistent 1987 SIC-based codes</p> Signup and view all the answers

<p>Using a crosswalk from Autor, Dorn, and Hanson (2013)</p> Signup and view all the answers

<p>2000-2012</p> Signup and view all the answers

<p>Six</p> Signup and view all the answers

<p>The labor share declines the most in U.S. industries that were strongly affected by increasing imports, such as from China.</p> Signup and view all the answers

<p>The authors observe a decline in labor's share in largely non-traded sectors such as wholesale trade, retail trade, and utilities.</p> Signup and view all the answers

<p>The authors do not find that manufacturing industries with greater exposure to exogenous trade shocks differentially lose labor share relative to other manufacturing industries.</p> Signup and view all the answers

<p>Elsby, Hobjin, and Sahin (2013) and Piketty (2014) stress the role of social norms and labor market institutions, such as unions and the real value of the minimum wage.</p> Signup and view all the answers

<p>The existing empirical evidence is largely based on macroeconomic and industry-level variation, which makes it harder to shed light on the distinctive implications of competing theories.</p> Signup and view all the answers

<p>The authors provide microeconomic evidence on the evolution of labor shares at the firm and establishment level.</p> Signup and view all the answers

<p>The between incumbent reallocation component</p> Signup and view all the answers

<p>5</p> Signup and view all the answers

<p>Within rather than between sector movements</p> Signup and view all the answers

<p>Because it closely aligns with the model</p> Signup and view all the answers

<p>Qualitatively similar patterns</p> Signup and view all the answers

<p>To test the decomposition findings</p> Signup and view all the answers

<p>They have increasingly used domestic outsourcing to contracting firms, temporary help agencies, and independent contractors and freelancers, which has directly reduced the labor share by saving on wage premia and reducing bargaining power of workers.</p> Signup and view all the answers

<p>It reduces the bargaining power of both in-house and outsourced workers in occupations subject to outsourcing threats.</p> Signup and view all the answers

<p>There is a rising correlation between firm wage effects and person effects, which accounts for a significant portion of the increase in U.S. wage inequality since 1980.</p> Signup and view all the answers

<p>It is the practice of large dominant employers using domestic outsourcing to contracting firms, temporary help agencies, and independent contractors and freelancers, leading to a rise in superstar firms and a decline in the labor share.</p> Signup and view all the answers

<p>Linking the rise of superstar firms and the fall of the labor share with the trends in inequality between employees.</p> Signup and view all the answers

<p>It saves on the wage premia, leading to a direct reduction in the labor share.</p> Signup and view all the answers