Right here is a new piece from Joe Kennedy, listed here are his abstract factors:
Regardless of the persistent claims that elevated market energy has harm staff, the scholarly proof is weak, whereas the macroeconomic knowledge is powerful and clear in exhibiting that this isn’t the principal trigger.
Labor’s share of earnings has declined barely over the previous 20 years, however not principally as a result of capital’s share of earnings has elevated.
Many of the decline is offset by a rise in rental earnings—what renters pay and what the imputed hire owners pay for his or her home. This enhance is because of restricted housing markets, not rising employer energy in product or labor markets.
Antitrust coverage will not be inflicting the drop in labor share, so altering it isn’t the answer. For points resembling employer collusion over wages or extreme use of noncompete agreements, antitrust authorities have already got energy to behave.
Stringent antitrust coverage would do little to lift the labor share of earnings, however it may very nicely cut back funding and productiveness progress. The higher manner to assist staff is with pro-growth, pro-innovation insurance policies that enhance productiveness.
This in all probability untruth acquired an enormous enhance about three years in the past, partly by way of temper affiliation. Maybe different knowledge will but rescue it, however for now I’m watching to see how lengthy it is going to take to die away. Ten years maybe?