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IMF research flags technology’s role in falling labour share of income

Falling cost of investment goods may be encouraging companies to replace labour with capital

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The labour share of income declined in advanced economies to 39.5% in 2014, from 54% in 1980

The declining cost of investment goods is one of the main driving forces behind the decline in the global labour share of income, according to a research paper published on July 24 by the International Monetary Fund.

Why Is Labour Receiving a Smaller Share of Global Income? Theory and Empirical Evidence shows how the wages and benefits of workers as a percentage of national income have been falling in advanced and developing economies alike in recent decades.

That share declined in advanced

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