02018cas a2200241 a 4500 AALejournalIMF004214 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865547 1018-5941 BD-DhAAL BD-DhAAL Guscina, Anastasia. Effects of Globalization on Labor's Share in National Income / Anastasia Guscina. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The past two decades have seen a decline in labor's share of national income in several industrial countries. This paper analyzes the role of three factors in explaining movements in labor's share--factor-biased technological progress, openness to trade, and changes in employment protection--using a panel of 18 industrial countries over 1960-2000. Since most studies suggest that globalization and rapid technological progress (associated with accelerated information technology development) began in the mid-1980s, the sample is split in 1985 into preglobalization/pre-IT revolution and postglobalization/post-IT revolution eras. The results suggest that the decline in labor's share during the past few decades in the OECD member countries may have been largely an equilibrium, rather than a cyclical, phenomenon, as the distribution of national income between labor and capital adjusted to capital-augmenting technological progress and a more globalized world economy. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/294 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/294/001.2006.issue-294-en.xml IMF e-Library