Capital v Labour

The production account can also be used to show changes in the share of income accruing to labour (i.e. compensation of employees) compared with the share accruing to capital (i.e. profits, defined as the gross operating surplus of non-financial and financial corporations). Graphs 30.4 and 30.5 show how the shares of total factor income accruing to compensation of employees and to profits have changed since 1965–66. (Total factor income is equal to the sum of compensation of employees, gross operating surplus and gross mixed income.)

The highest recorded value of the compensation of employees (COE) share of total factor income was 62% in 1974–75. The COE share in 2010–11 was 53%, steady with the previous year (53%), and one of the lowest levels recorded in the time series presented. The profits share of total factor income has been growing steadily since 1998–99. In 2010–11, the profits share was 28%, the second highest share recorded; the highest was in 2008–09 (29%).

20130121-071732.jpg

20130121-071751.jpg

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s