A World of Unfair Shares
Global Wage Report, prepared by the International Labor Organization, ties this to two trends: the share of total income received by labor has been falling, and, within labor, the share received by the highest paid has been growing. The second change has a significant effect in a few nations only, while the first impacts a majority of nations. The fall in the labor share of income underscores questions of basic fairness. Labor’s share of income had been stable during most of the last century as the growth in labor’s share of income correlated to the increase in productivity, but these trends have recently diverged as growth in the labor share lagged behind productivity gains. The ubiquity of this phenomenon presents an opportunity to foster global solidarity and redirect the conversation from aggregate economic growth to distribution.