As you can see in the graph below7, labour compensation as a share of GDP in the USA and the UK for the past 60 years has been relatively constant at around 2/3. Labour compensation in Norway and Australia, however, having been higher than the UK/US levels in the 1950s and 1960s, started to fall dramatically in the 1970s. Since the mid 1990s, the compensation shares in Australia and Norway have been consistently lower than the British and American levels. According to the theory developed in the textbook (and in earlier questions) what factors could potentially explain these trends?

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FRED ~ - Share of Labour Compensation in GDP at Current National Prices for Norway - Share of Labour Compensation in GDP at Current National Prices for Australia Share of Labour Compensation in GDP at Current National Prices for United States Share of Labour Compensation in GDP at Current National Prices for United Kingdom 0.85 0.80 0.75 0.70 (Percent) 0.65 0.60 0.55 0.50 0.45 1950 1960 1970 1980 1990 2000 2010 Shaded areas indicate US recessions - 2014 research.stlouisfed.org