Data and code for: The decline of the labor share: new empirical evidence

We use time series techniques to estimate the importance of four mainexplanations for the decline of the US labor income share: (i) rising firm markups,(ii) falling bargaining power of workers, (iii) higher investment-specific technologygrowth, and (iv) more automated production processes. Identification is achievedwith restrictions derived from a stylized model of structural change. Our resultspoint to automation as the main driver of the labor share, although rising markupshave played an important role in the last 20 years. We also find evidence of capital-laborcomplementarity, suggesting that capital deepening may have raised the laborshare.