Labour's share of income has been on a downward structural trend since the 1980s, resulting from the decline in labour's bargaining power, globalisation and technological progress. Not only will that downward trend continue, but it could even intensify as technology has a bigger effect. Admittedly, we should see a cyclical recovery in labour's share over the next few years, but this will be temporary and we would expect the downward structural trend to dominate over longer periods.
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