This article addresses an important trend in contemporary income inequality—a decline in labor’s share of national income and a rise in capitalists’ profits share. Since the late 1970s, labor’s share declined by 6 percent across the U.S. private sector. As I will show, this overall decline was due to a large decline (5 to 14 percent) in construction, manufacturing, and transportation combined with an increase, albeit small (2 to 5 percent), in labor’s share within finance and services industries. To explain the overall decline and the diverse trends across industries, I argue that the main factor leading to the decline in labor’s share was the erosion in workers’ positional power, and this erosion was partly an outcome of class-biased technological change, namely computerization that favored employers over most employees. I combine data from several sources to test for the independent effects of workers’ positional power indicators (i.e., unionization, capital concentration, import penetration, and unemployment) and the direct and indirect effects of computer technology on changes in labor’s share within 43 nonagricultural private industries and 451 manufacturing industries between 1969 and 2007. Results from error correction models with fixed-effect estimators support the study’s arguments.
It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.
The economic shutdown and national lockdown following the outbreak of COVID-19 have increased demand for unpaid work at home, particularly among families with children, and reduced demand for paid work. Concurrently, the share of the workforce that has relocated its workplace to home has also increased. In this article, we examine the consequences of these processes for the allocation of time among paid work, housework, and care work for men and women in Israel. Using data on 2,027 Israeli adults whom we followed since the first week of March (before the spread of COVID-19), we focus on the effect of the second lockdown in Israel (in September) on the gender division of both paid and unpaid work. We find that as demand for housework caused by the lockdown increases, women—especially with children—increase their housework much more than men do, particularly when they work from home. The consequences of work from home and other flexible work arrangements for gender inequality within the family are discussed.
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