The “labor share” of GDP has fallen since 2000. Is this another sign that the robots are going to rule our economy? David Autor, an economics professor at MIT, explains the differing explanations for why this is happening.
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International Economics: IB Economics
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A collection of articles relating to the 'international' elements of Economics and relating to IB, Pre-U and A-Level Economics.
Curated by
Graham Watson
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As ever, Marginal Revolution University have served up another excellent clip looking at an important economic issue. In this case it's a look at an fairly niche branch of post-16 economics - the factor distribution of income.
In it, he looks at two contemporary phenomenon: the rise of the superstar firm and the declining share of national income that goes to labour. The clip develops a number of theories as to why the latter is happening: automation, failure of competition - allowing firms to earn higher profits and for those profits to go to workers, and the rise of the superstar firm, likely to be more capital-intensive than many of their rivals. But which is true? You'll have to watch the clip to find out.