The Rise of Gross Operating Surplus in Manufacturing since 1960


Gross operating surplus, which is roughly value added less labor compensation, input costs, and production taxes, has increased substantially in the manufacturing sector since 1980. Gross operating surplus includes consumption of fixed capital (CFC)proprietors’ income, and corporate profits. Note that this measure is gross rather than net, so while part of the increase in GOS reflects increased capital income, changes in the average depreciation rates of the capital stock (e.g. computers comprise a larger share of the capital stock and have faster depreciation rates) are also relevant for interpreting this series.

For context, here is the analogous picture for all industries in the US. GOS_allindustries

About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar.
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