WHAT ARE THE EFFECTS OF MACROECONOMIC RATES OF RETURN OF INVESTMENT ON WAGE SHARE?

This dissertation assesses the potential effects of the macroeconomic rates of return of private and public investment on wage share for 16 OECD countries from 1980 to 2022. Using the macroeconomic rates of return of investments and the wage share at factor cost and at market price, it was possible to conclude that the first has a positive effect on the wage share. Moreover, the total factor productivity negatively affects the wage share when it comes to private investment, while its influence is positive in the case of public investment. The results were also analyzed according to whether countries presented the total factor productivity of capital above or below the average. This analysis highlights the inverse pattern of the human capital index on wage share, both with respect to the type of investment and to the capital productivity observed across countries.