New research reveals optimal labor share for maximum societal prosperity!
Labor's share of income has been decreasing in many countries, which is seen as a problem. A study using a model based on US data found that the socially optimal labor share is 17% higher than the current level. This means that having more income going to workers would be better for society. The study also showed that fluctuations in income shares are actually beneficial for the economy, and the current equilibrium does not lead to stable growth.