Measuring Labor Income
By Arnold Kling
Having reached a peak of 58 percent in 1970, wages and salaries have declined to only 52 percent of national income in 2003. However, if we consider total compensation—including employer social insurance contributions and benefits—labor’s share has shown very little variation. By this measure, labor’s share of national income has averaged 70.5 percent over the past 50 years and has remained within a narrow range of that average
For Discussion. Is this consistent with my claim that “If employers bear the cost of health insurance, then I’m the Easter Bunny”?