1 Introduction.

The article explores the concept of the labor share, which refers to the portion of an economy's income that goes to workers in exchange for their labor services. It discusses how the labor share has been declining in the United States since the Great Depression, with a significant decrease since World War II. This decline is not unique to the United States and is attributed to technological developments such as the information age and automation. The article evaluates different factors that may contribute to this decline and discusses its implications for welfare, distribution, and policy. It also examines the challenges in measuring the labor share and concludes by discussing the allocation of income between labor and capital. [Extracted from the article]