The labor share of income has dropped from roughly two thirds to below sixty percent since the early 1980s. The US looks like an outlier even among rich countries.

In this episode, Ben sits down with Anna Stansbury, MIT economist and co-author with Larry Summers of influential work on worker power, to dig into what's driving wage stagnation and which institutions might fix it.

Topics covered:

• The three theories of the declining labor share: globalization, technology, and the fall of worker power, and why the US looks different from almost everywhere else
• Why monopsony's wage effect is probably 5 to 10 percent below competitive wages, not the 30 to 50 percent implied by some elasticity estimates
• Why the more important story may be rent attribution: who captures firm profits when competition declines, and why  ...