International data on labor’s share of total national income shows variation between countries and over time. In Europe, for example, in 2006, labor’s share was between 60% and 70% for most countries. While labor’s share is similar today, its share varied widely in these countries some years ago. In Greece in the early 1970s, labor’s share was less than 50%, while in France in the 1980s; labor’s share was close to 80%. Using the model developed in this chapter, how can you best explain these changes over time?