Growth regimes, intangible capital and the labour share

This paper examines how far an increase in the intangible capital to output ratio contributes to changes in the labour share. We focus on a selection of OECD countries using industry-level data from 1995 to 2017. We show that the relationship between intangible capital and labour share is heterogeneous, and whether it is positive or negative depends on the types of intangibles and the growth regime of the national economy.