IMF report: Steady march of technology is shrinking workers’ slice of income pie
Labour’s share of national income declined in 29 of the world’s 50 biggest economies between 1991 and 2014, an IMF report shows
Washington — The advance of technology is the biggest reason workers are earning a shrinking slice of the income pie, according to a new study by the International Monetary Fund (IMF). Labour’s share of national income declined in 29 of the world’s 50 biggest economies between 1991 and 2014, the IMF said in a study released on Monday. Analysis suggests "technology is the largest contributor to the change in labour shares in the large majority of countries," it said. The second main component of income is capital. When wages grow more slowly than productivity, labour’s share of income falls as the owners of capital reap gains at a quicker pace. That often worsens income inequality because capital tends to be concentrated in the hands of a few, the IMF said in a blog accompanying the research. The IMF’s finding is significant because economists have been debating what’s to blame for decades of sluggish wage growth. President Donald Trump has blamed trade with countries such as China a...
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