Economist Declan Trott refutes suggestions that labour’s share of income has declined, arguing that it remained at around its long-term average in 2016. Trott, who has previously worked for the Department of Jobs & Small Business, has analysed data on workers’ share of income between 1960 and 2015-16. He notes that labour’s share of income fell as profits rose during the resources boom, before recovering when the boom ended. From The AFR:
“Overall, there is little sign of a long-term decline in the labour share,” Mr Trott notes in the July 2018 paper, Adjusting the Australian Labour Share for Depreciation, Housing and Other Factors, 1960–2016.
