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- W4293761878 abstract "We study the coevolution of the fall in the US corporate-sector labor share and the rise of business activity in tax-preferred pass-throughs. We find that reallocating activity to the form it would have taken prior to the Tax Reform Act of 1986 accounts for one-third of the decline in the corporate-sector labor share between 1978 and 2017. Our adjustments are concentrated among mid-market firms in services, magnifying the role of the manufacturing sector and superstar firms in driving the remaining decline in the labor share. Our findings highlight the importance of tax policy when measuring factor shares. (JEL D22, E25, H25, K34, L60, L80)" @default.
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- W4293761878 date "2022-09-01" @default.
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- W4293761878 title "The Rise of Pass-Throughs and the Decline of the Labor Share" @default.
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- W4293761878 doi "https://doi.org/10.1257/aeri.20210268" @default.
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