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Nice post. The whole labour share debate, at least in the newspapers, overlooks how much of the capital share actually winds up in the hands of labour through retirement savings instruments.

Interesting take on the issue.

What about the other end of the age spectrum? The number of retirees may be expanding as a proportion of the poopulation, but if the number of people who are under employable age is falling - and I think that's happening - then maybe the proportion of the population who are of working age won't be falling as much as you say. Or do only the number of adults count if younger people don't claim income?

If workers share their income with their children, then a 'baby bust' would probably have the same effect as a 'retirement boom': a reduction in labour's share of income. The two effects appear to work in the same direction.

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