Greater import penetration lowers labor’s share of income

Evidence

The effect of import penetration on labor’s share of income supports the globalization thesis. Between 1971 and 1997, a 1% increase in import penetration, in the long run, leads to a 0.32% decrease in labor’s share of income among extractive and manufacturing industries. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 133

The effect of import penetration on labor’s share of income supports the globalization thesis. Between 1971 and 1997, a 1% increase in import penetration, in the long run, leads to a 0.32% decrease in labor’s share of income among extractive and manufacturing industries. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 133

Categorization

• XREF: Direct quantitative support for the trade-globalization channel that complements financialization accounts of inequality. — connects to: Labor’s share of income declined in the nonfinancial economy from 1970 to 2008 — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 74; Trade integration fused American underinvestment with Chinese overinvestment for both workers’ harm — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 569; US profit and labor shares moved in exact symmetric opposition over forty years — Clara E. Mattei, The Capital Order: How Economists…, 82
• corroborated: 2 independent passages support this claim — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 133

Related

• US profit and labor shares moved in exact symmetric opposition over forty years (similarity 0.83)
• Deunionization and import competition drive inequality, but computer investment’s inequality effects are uneven. (similarity 0.82)
• Financialization caused most of the decline in labor’s income share since 1970 (similarity 0.82)
• Labor’s share of income declined in the nonfinancial economy from 1970 to 2008 (similarity 0.81)
• Financialization caused roughly three-quarters of the labor share decline by 1997. (similarity 0.81)
• Financialization independently explains over half of labor’s falling income share since 1970. (similarity 0.81)
• Trade integration fused American underinvestment with Chinese overinvestment for both workers’ harm (similarity 0.78)