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The 152th meeting jointly organized with International Public Policy Seminar
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Date | 2023.5.19 Fri 13:30 - 15:00 |
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How to apply | Email |
Contact | KITABAYASHI, Institute of Social Science, The University of Tokyo |
The Osaka Workshop on Economics of Institutions and Organizations, OEIO, meets every month to exchange research ideas on institutional and organizational economics. Participants include both people specialized in theoretical research and those in empirical research. Topics of meetings might be about microeconomic theory, macroeconomic theory, or economic history..., whatever on institutional and organizational economics.
Presenter: Noritaka Kudoh (Department of Economics, Nagoya University)
Title: "Hours of Work and the Labor Share"
Abstract: This paper challenges the consensus in the literature that labor supply factors play no role in understanding the labor share of income. We develop a simple dynamic general equilibrium model with search-matching frictions in the labor market, endogenous work hours, and capital. An increase in productivity reduces work hours through the income effect without reducing output. This reduces the labor share as income grows. Our quantitative analysis shows that productivity improvement explains both the downward trend in the U.S. labor share and the decline in work hours.