Is there a term for the fraction of economic value earned by a person in their labor that is due to their creation?

For example, a car factory laborer who's work creates:

Economic value created = $500,000

Income Paid = $50,000

Would have a value of 0.1

At the other end of the spectrum, the CEO might be

Economic value created = $2,000,000

Income paid = $1,500,000

Fraction = 0.75


1 Answer 1


You seem to be looking for the phrase 'wage share' or 'share of labour compensation'.

Wage share:

The wage share (or labor share) is the ratio between compensation of employees (according to the system of National accounts) and one of the following variables:

  1. gross domestic product at market prices
  2. gross domestic product at factor cost
  3. net domestic product at factor cost (domestic income at factor cost)

Here is some US data on share of labour compensation.

  • 1
    $\begingroup$ Sometimes it is also called the labor share. $\endgroup$
    – BKay
    Commented Apr 16, 2016 at 23:06
  • $\begingroup$ Thanks, that's more or less what I'm interested in. Is there somewhere you can get this data per job type, per industry or per company? $\endgroup$
    – Some Guy
    Commented Apr 16, 2016 at 23:06
  • $\begingroup$ @SomeGuy I am afraid I don't know the answer to that. My guess would be that you cannot because you may be able to infer costs from that and companies try to keep such information secret. $\endgroup$
    – Giskard
    Commented Apr 17, 2016 at 6:40

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