ABSTRACT
The factor which is of over-riding priority to any company engaged in wage negotiations is its competitive ability. One way in which a company can increase its residual income after paying its employees is to increase labour productivity. The allocation of a firm’s income to the factors of production has long been of interest to economists. Most nations maintain comprehensive statistics regarding industrial output, employment, wages, salaries, and many other factors relevant to their economic well-being. In a capitalist economy one would normally expect to see a fairly consistent set of relationships between the incomes of the individual factors of production and the income of a firm. The examination, on an international basis, of labour’s share of a company’s income is perhaps mainly of interest to economists. Labour’s share of the net income of an enterprise is not just a topic for academic theorists.
