Capital Overpaid, Labor Underpaid: New Study Reveals Income Discrepancies
The article explores whether workers are paid based on how much they contribute to production. By looking at data from manufacturing companies, the researchers found that capital gets paid more than it actually adds to production, while intermediate inputs get paid less. However, labor seems to be paid fairly close to its actual contribution. This has big implications for how income is distributed and whether companies are making the most efficient decisions.