Decline in wage share linked to economic slowdown, income inequality rise.
The article discusses how changes in how income is distributed between workers and business owners can affect the overall economy. Research shows that a decrease in the share of income going to workers can slow down economic growth. This is because workers tend to spend more of their income, which boosts demand for goods and services. The study found that the distribution of income between labor and capital has a significant impact on consumption, investment, exports, and imports in a country.