Economics, Econometrics and Finance
4 years ago

Switzerland's Income Shift: Rise in Factorless Income Raises Economic Concerns

RePEc: Research Papers in Economics
The Evolution of Factor Shares: Evidence from Switzerland
Guido Baldi, Martina Pons

Paper Summary

The labor share of income in Switzerland has stayed steady, but the share of capital rental payments has decreased. This means that the factorless income share has increased, possibly due to economic rents or higher compensation for risks. The stable labor share is not because of high wages, but because of low investment growth and a growing labor force.

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