Can variable elasticity of substitution explain changes in labor shares?

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2023-06-01 DOI:10.1016/j.jmacro.2023.103518

Alessandro Bellocchi, Giuseppe Travaglini

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引用次数: 1

Abstract

In CES production functions, the magnitude of the elasticity of substitution between capital and labor ( $σ$ ) is crucial to explain the evolution of the labor share. The decline in labor share observed worldwide can be explained by capital accumulation if $σ > 1$ . However, empirical evidence on the value of $σ$ is mixed. To shed light on this issue, we employ a Variable Elasticity of Substitution (VES) production function where $σ$ is an endogenous driver of the labor share. Using macro data for six advanced OECD economies from 1980 to 2020 we provide estimates of $σ$ under imperfect competition. We test the prediction of the model by means of simulations. Mainly, we find that capital deepening, markup and technological change explain a significant part of the observed decline in labor shares. The results suggest complementarity between labor and capital in all the countries except the United States.

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可变替代弹性能否解释劳动份额的变化?

在CES生产函数中，资本和劳动之间替代弹性的大小(σ)对于解释劳动份额的演变至关重要。如果σ>1，全球范围内劳动收入占比的下降可以用资本积累来解释。然而，关于σ值的经验证据是混合的。为了阐明这个问题，我们采用可变替代弹性(VES)生产函数，其中σ是劳动份额的内生驱动因素。本文利用经合组织六个发达经济体1980 ~ 2020年的宏观数据，对不完全竞争条件下的σ进行了估计。我们用模拟的方法来检验模型的预测。主要是，我们发现资本深化、加价和技术变革解释了观察到的劳动份额下降的重要部分。结果表明，除美国外，所有国家的劳动力和资本都具有互补性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.