The “labor share” of GDP has fallen since 2000. Is this another sign that the robots are going to rule our economy? David Autor, an economics professor at MIT, explains the differing explanations for why this is happening.

The “labor share” of GDP means the share going to wages, salaries and benefits—as opposed to going to capital (stockholders, business owners, etc.). That money hasn’t gone away, but it has been concentrated in the hands of fewer and fewer people.

Why is this happening? Is it because of robots taking work from humans? A lack of competition? Or something else? David Autor explains the answers he discovered in his 2019 study on labor share and superstar firms.

This video is based on the paper:
The Fall of the Labor Share and the Rise of Superstar Firms by David Autor, David Dorn, Lawrence F. Katz, Christina Patterson, and John Van Reenen. https://economics.mit.edu/files/12979

More of David Autor’s work: https://economics.mit.edu/faculty/dauto

Want to see more economists in the wild? Check out our playlist: https://mru.io/1708a

Are you a teacher? Here’s a free curriculum about the future of jobs: https://mru.io/robots-e4827

Want to dive deeper? Check out this video to see how globalization and automation is changing our economy: https://mru.io/avengers-3fa96

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