This study takes a regional approach to analyzing what drives labor's share of income for South Korea over 2000–2014. First, we document empirically that changes in the labor share within a region are the dominant component of the change in the aggregate labor share of national income. To study the dynamic determinants of the labor share of income at the regional level, a panel vector autoregression (PVAR) model is estimated to examine how the regional labor share responds to innovations in an array of variables suggested by theoretical models. Consistent with theory, we confirm that technology, capital intensity and market concentration are the key variables explaining the labor share dynamics. Furthermore, we analyze the effects of trade openness and R&D expenditures on the regional labor share. Interestingly, we find that the labor share shows a different pattern of responses to the identified shocks depending upon the type of regions, that is, whether it is in the metropolitan or provincial areas. We also discuss the implications of our results for both theory and policy.

中文翻译：

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是什么推动了韩国的劳动收入份额？区域分析

本研究采用区域方法来分析推动韩国 2000 年至 2014 年劳动收入份额的因素。首先，我们根据经验证明，一个地区内劳动份额的变化是国民收入总劳动份额变化的主要组成部分。为了研究区域层面劳动收入份额的动态决定因素，估计了面板向量自回归 (PVAR) 模型，以检查区域劳动份额如何响应理论模型建议的一系列变量的创新。与理论一致，我们确认技术、资本密集度和市场集中度是解释劳动力份额动态的关键变量。此外，我们分析了贸易开放和研发支出对区域劳动力份额的影响。有趣的是，我们发现，劳动力份额对已识别冲击的反应模式因地区类型而异，即是在大都市地区还是省级地区。我们还讨论了我们的结果对理论和政策的影响。