The Rise of Pass-Throughs and the Decline of the Labor Share

Autor:	Matthew Smith, Danny Yagan, Owen Zidar, Eric Zwick
Rok vydání:	2022
Předmět:	History Polymers and Plastics General Earth and Planetary Sciences Business and International Management Industrial and Manufacturing Engineering General Environmental Science
Zdroj:	American Economic Review: Insights. 4:323-340
ISSN:	2640-2068 2640-205X
Popis:	We study the coevolution of the fall in the US corporate-sector labor share and the rise of business activity in tax-preferred pass-throughs. We find that reallocating activity to the form it would have taken prior to the Tax Reform Act of 1986 accounts for one-third of the decline in the corporate-sector labor share between 1978 and 2017. Our adjustments are concentrated among mid-market firms in services, magnifying the role of the manufacturing sector and superstar firms in driving the remaining decline in the labor share. Our findings highlight the importance of tax policy when measuring factor shares. (JEL D22, E25, H25, K34, L60, L80)
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::b0f3e5565860f4bccdf47d29a7795317 https://doi.org/10.1257/aeri.20210268 Zobrazit plný text záznamu