Demographic changes and the labor income share

In this article, we study the impact of demographic changes on inequality between capital and labor incomes. More precisely, analyze exogenous in both rate natural increase net migration income as a share total income. We estimate structural vector autoregression (VAR) model panel 18 OECD countries with annual data for 1985–2018. find that response to an change is significantly negative few years after shock, whereas its positive. This suggests addition factors usually introduced literature, play role observed variation share.