Betting on the Future: A Comparison Macroeconomic Dynamics of Labour Income Share in The United States: Evidence From MARS

Abstract

Macroeconomic dynamics of the labour income share (herein: lis) in the United States for the period of 1948Q1-2019Q1 are tried to be determined in this study, where the Multivariate Adaptive Regression Splines (will be referred to herein as MARS) approach is employed. In order to investigate sectorial differences, the business, non-farm, and non-finance sectors are evaluated, respectively. In accordance with the results obtained, it may be observed that the macroeconomic dynamics of lis in the business sector are productivity, export, profit, gross private domestic investment, unemployment rate, current account balance, gross domestic product, and tax revenue, respectively. Related macroeconomic dynamics of lis concerning non-farm sector are productivity, current account balance, gross private domestic investment, export, consumer price index, gross domestic product, profit, unemployment rate, and gross government investment.