Abstract
labor has increased in the American economy over the postwar years. However, the apparent increase may not be real. Indeed, several explanations have been advanced to account for the trend, i.e., for the apparent increase but actual constancy of relative shares. First, the government sector has consistently gained in importance over the period. By accounting practice, all the government contribution to national product is regarded as compensation of employees. Hence an increase in the government sector augments both numerator (the national wage bill) and denominator (national income) by the same amount, thus increasing labor's relative share. This influence is normally eliminated by concentrating on the private domestic econ2 omy.
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