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.@ATabarrok explains that the share of total economic income going to workers hasn't actually dropped as much as people think. The confusion comes from how we measure pay. Today, many skilled workers receive company stock instead of just a traditional cash salary. When that stock increases in value, tax rules often count it as investment income ("capital gains") rather than worker pay ("labor income"). If economists correctly include this stock-based compensation as part of what workers earn, the supposed decline in labor's share of the economy almost completely disappears.

Marian_L_Tupy ↗