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Labor Share of Net Income: Remaining Stable

Created on May 31, 2016

Labor Share of Net Income: Remaining Stable


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Read the original report, "Labor’s Share of Income Little Changed Since 1948," by James Sherk.

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Note: This chart shows total employee compensation in the non-farm business sector, divided by net value added in the non-farm business sector and excluding self-employment income from both the numerator and the denominator. Attributing self-employment income to either labor or capital is fundamentally ambiguous.Source: Heritage Foundation calculations using data from Bureau of Economic Analysis, “National Income and Product Accounts,” Tables 1.3.5, 1.9.5, 1.12, 1.13, and 6.2.

CHART 1 • BG 3111

Tags: labor, net-income