US Wages Share of GDI at 75 Year Low

One major element in this is the rise of earnings from pass-through income. Self-employed or nearly self-employed individuals who would have been counted as employees of their small businesses 30+ years ago increasingly take "profits" from their business rather than "wages," even though they are the same thing. The "profits" get tax advantages. This makes labor share decline despite dentists, consultants, etc. still doing the same amount of work and taking home the same pretax income. See: https://www.ericzwick.com/labshare/labshare.pdf

This is purely data with no narrative attached, which is sort of refreshing.

The un-answered question is what is now eating up the percentage that was going to wages?

What are the options? R&D, shareholders, lawyers, advertising/marketing/PR, share buy-backs, political lobbying (cough bribery cough), strategic reserves?

<scarcasm>Wait till millions of robotaxis hit the streets, the graph will crater!</sarcasm>

Does this include income like RSUs?

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