The Decline in Labor’s Share of Corporate Income

Labor Share of Income
In an article for the Economic Policy Institute, Josh Bivens wrote,

“Between 2000 and the second quarter of 2015, the share of income generated by corporations that went to workers’ wages (instead of going to capital incomes like profits) declined from 82.3 percent to 75.5 percent, as the figure shows. This 6.8 percentage-point decline in labor’s share of corporate income might not seem like a lot, but if labor’s share had not fallen this much, employees in the corporate sector would have $535 billion more in their paychecks today. If this amount was spread over the entire labor force (not just corporate sector employees) this would translate into a $3,770 raise for each worker.”

Source: The Decline in Labor’s Share of Corporate Income Since 2000 Means $535 Billion Less for Workers | Economic Policy Institute

Image: Economic Policy Institute