Key Ideas

1. Decline in labor share and rise of superstar firms: The authors explore the relationship between the declining share of labor income in total income and the increased market concentration of large and successful firms.

2. Declining labor share and wage inequality: The decline in the labor share has contributed to rising wage inequality, as a smaller proportion of income goes to workers.

3. Superstar firms and productivity growth: The rise of superstar firms, characterized by their market power and dominance, has implications for productivity growth in the economy.

4. Impact of digitaliza....
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Quiz