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Labor Share of Net Income

Created on May 31, 2016

Labor Share of Net Income


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Read the original report, "Workers’ Compensation: Growing Along with Productivity," by James Sherk.

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The labor share of net income has fluctuated little between 1973 and 2008, peaking in 2001. After the Great Recession, however, the labor share dropped from 70.6 to 68.3 percent.

Note: This chart shows total employee compensation in the non-farm business sector divided by net value added in the non-farm business sector, excluding proprietors’ income. This excludes self-employment income from both labor and total income in the non-farm business sector. Source: Heritage Foundation calculations using data from U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts Tables, Tables 1.95, 1.13, and 6.2, http://www.bea.gov/iTable/iTable.cfm?ReqID=9& step=1#reqid=9&step=1&isuri=1 (accessed November 9, 2015).

CHART 5 • BG 3088

Tags: compensation-growth, productivity-growth