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517. Are M.B.A.s to Blame for Wage Stagnation?

Freakonomics Radio

How Did the Professionalization of the Management Class Cause the Labor Share to Fall?

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In the 1980s, just over 25% of US firms were run by what he and his co-authors call business managers. By 2020, that share was over 40%. The share of GDP that goes to workers has been declining from 63% in the 1980s to 58% today. Did the professionalization of the managerial class cause the labor share to fall? Asamoglu wanted to know if or how those two trends were connected.

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