Chart Detail
Corporate-sector income shares, profit rates, and capital-to-output ratio, selected years, 1959–2010
| Income share | Profit rate | Capital-to-output ratio | ||||
|---|---|---|---|---|---|---|
| Labor | Capital | Total | Pretax | Post-tax | ||
| 1959 | 77.5% | 22.5% | 100.0% | 12.6% | 6.9% | 1.78 |
| 1969 | 79.1 | 20.9 | 100.0 | 13.0 | 7.8 | 1.61 |
| 1979 | 81.2 | 18.8 | 100.0 | 9.4 | 5.8 | 2.01 |
| 1989 | 80.0 | 20.0 | 100.0 | 10.8 | 7.8 | 1.85 |
| 1995 | 79.3 | 20.7 | 100.0 | 11.6 | 8.1 | 1.79 |
| 2000 | 81.2 | 18.8 | 100.0 | 11.0 | 7.8 | 1.71 |
| 2007 | 78.0 | 22.0 | 100.0 | 11.1 | 7.5 | 1.99 |
| 2010 | 73.8 | 26.2 | 100.0 | 13.3 | 9.6 | 1.97 |
Source: Authors' analysis of Bureau of Economic Analysis National Income and Product Accounts (Table 1.14) and Fixed Assets Accounts (Table 6.1)
Documentation and methodology
Underlying data are from the Bureau of Economic Analysis National Income and Product Accounts, Table 1.14, “Gross Value Added of Domestic Corporate Businesses in Current Dollars and Gross Value added of Nonfinancial Domestic Corporate Business in Current and Chained Dollars” and BEA Fixed Assets Accounts, Table 6.1, “Current-Cost Net Stock of Private Fixed Assets by Industry Group and Legal Form of Organization.” Total income shares are the sum of labor and capital income, specifically the sum of line items Compensation and Net Operating Surplus to get net value added in NIPA Table 1.14. Labor share is the share of compensation in net value added and capital is net operating surplus over net value added. Pretax profit rate is the net operating surplus divided by private fixed corporate assets, line item 2 from Table 6.1. Post-tax profit rate is the net operating surplus, without taxes, divided by private fixed corporate assets. The capital-to-output ratio is private fixed corporate assets divided by the constructed net value added.
