Capital intensity

Business

Archaeology

Capital deepening

Capital formation

Physical capital

History

Labour economics

Wage share

Economics

Microeconomics

Profit (economics)

Wage

Human capital

Return on capital

Monetary economics

Efficiency wage

Capital (architecture)

Market economy

Financial capital

Fixed capital

Cost of capital

The Journal of Finance

ABSTRACT This paper presents direct measures of capital costs, equal to the product of the required rate of return on capital and the value of the capital stock. The capital share, equal to the ratio of capital costs and gross value added, does not offset the decline in the labor share. Instead, a large increase in the share of pure profits offsets declines in the shares of both labor and capital. Industry data show that increases in concentration are associated with declines in the labor share.

Declining Labor and Capital Shares