Labor's Lost Share of GDP

http://viableopposition.blogspot.ca/2013/12/labors-lost-share-of-gdp.html

Every dollar of income must be earned by production factors of either capital or labor or be taken by government in the form of taxes.  Of the above factors, only employee compensation in its entirety is considered labor income.  In addition, a portion of proprietors' income is considered labor income; in the case of self-employed workers/proprietors, it is assumed that they pay themselves the same wage that they would otherwise earn in their respective sector of the economy.  To calculate labor share, the total labor compensation is then divided by the total value added to the economy, deriving labor share as shown here: