Why Labor’s Share of Wealth Is Shrinking

Mr. Neiman is a professor of economics at the University of Chicago.

Workers are earning a smaller and smaller share of the economy’s income. Their cut — referred to by economists as “the labor share” — has been falling for decades. And it’s getting worse. During the past few years, it declined at a rapid clip and is now at its lowest level on record — about 53 percent of income, down from about 65 percent after World War II.

Many policymakers blame industry consolidation and corporate greed for keeping a lid on workers’ compensation. Sure enough, there are now only three large wireless companies and four major airlines; Google dominates search. Corporate profits as a........

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