---
title: "Globalization, Creative Destruction, and Labor Share Change: Evidence on the Determinants and Mechanism from Longitudinal Plant-level Data"
authors:
  - name: "Maliranta, Mika"
  - name: "Böckerman, Petri"
date_published: "2009-02-02"
series: "Discussion Papers no."
series_number: "1178"
jel_codes:
  - "F16"
  - "J31"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/2012/09/dp1178.pdf"
keywords:
  - "globalization"
  - "international trade"
  - "foreign ownership"
  - "micro-level restructuring"
  - "labor share"
identifier: "https://www.etla.fi/julkaisut/id/Discussion-Papers-no.-1178"
---

# Globalization, Creative Destruction, and Labor Share Change: Evidence on the Determinants and Mechanism from Longitudinal Plant-level Data

**Published:** 2009-02-02  
**Categories:** Publikationer  
**Tags:** Diskussionsämnen, globalisaatio  
**URL:** https://www.etla.fi/sv/publikationer/dp1178-en/

We examine the sources and micro-level mechanisms of the changes in the labor share of value added. We link the micro-level dynamics of the labor share change with that of productivity and wage growth. Using a useful variant of the decomposition method we make a distinction between the change in the average plant and the micro-level restructuring. With Finnish plant-level data covering three decades we show that micro-level restructuring is the link between the declining labor share and increasing productivity in 12 manufacturing industries of four regions, and that increased international trade is a factor underlying those shifts.

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