Published in Macroeconomic Dynamics, December 2018 "Is Labor's Loss Capital's Gain? Gross versus Net Labor Shares"
Labor share has been falling since the 1970s. I show that U.S. labor share has not fallen as much once items that do not add to capital, depreciation and production taxes, are netted out. Recent net labor share is within its historical range whereas gross share is at its lowest level. This effect holds for other large economies, even undoing the fall in labor share in some cases. The overall picture is no longer one of unprecedented, globally declining labor share.