Getting the picture right on wage share in Singapore

The wage component of GDP offers a useful glimpse of the overall structure of an economy, but cannot be a complete guide to its complexities and longer-term trends.

The gross domestic product (GDP) of a country is essentially the sum of all value-add in the country. It is the value, or wealth, generated in the country.

Part of the value-add goes to wages, the rest goes to capital and other components. When people discuss whether labour, or workers, is getting a fair share, they look at the wage share of GDP in a country.

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A version of this article appeared in the print edition of The Straits Times on December 12, 2018, with the headline 'Getting the picture right on wage share in Singapore'. Print Edition | Subscribe