The labor share of income and income inequality

The paper aims to explore the link between the labor share and income inequality. Ten of the most advanced market economies are being studied. OECD statistics are used as the information basis for the labor share. The income inequality is measured by the Gini index and the Frederic Solt database is used. It is found that in 80% of the countries surveyed the decrease in the labor share increases the income inequality. This relationship is most pronounced in the countries following the Anglo-Saxon liberal market model of development