. ▁ ▁Re asons ▁for ▁the ▁gap ▁B LS ▁explained ▁the ▁decl ine ▁in ▁labor ▁share ▁as ▁likely ▁driven ▁by ▁three ▁factors ▁that ▁vary ▁by ▁industry : ▁Global ization : ▁In come ▁that ▁might ▁have ▁gone ▁to ▁domestic ▁workers ▁is ▁going ▁to ▁foreign ▁workers ▁due ▁to ▁off sh oring ▁( i . e ., ▁production ▁and ▁service ▁activities ▁in ▁other ▁countries ). ▁In cre ased ▁autom ation : ▁ ▁More ▁autom ation ▁means ▁more ▁share ▁of ▁income ▁attributed ▁to ▁capital . ▁F aster ▁capital ▁dep reci ation : ▁ ▁Information ▁assets ▁dep reci ate ▁more ▁rapidly ▁than ▁mach in ery ; ▁the ▁latter ▁were ▁the ▁greater ▁share ▁of ▁the ▁capital ▁base ▁in ▁the ▁past . ▁This ▁may ▁require ▁a ▁higher ▁capital ▁share ▁to ▁generate ▁income ▁than ▁in ▁the ▁past . ▁ ▁Market ▁factors ▁ ▁Global ization ▁ ▁Global ization ▁refers ▁to ▁the ▁integration ▁of ▁econom ies ▁in ▁terms ▁of ▁trade , ▁information , ▁and ▁jobs . ▁In nov ations ▁in ▁supply ▁chain ▁management ▁enabled ▁goods ▁to ▁be ▁s our ced ▁in ▁Asia ▁and ▁sh ipped ▁to ▁the ▁United ▁States ▁less ▁exp ens ively ▁than ▁in ▁the ▁past . ▁This ▁integration ▁of ▁econom ies , ▁particularly ▁with ▁the ▁U . S . ▁and ▁Asia , ▁had ▁dram atic ▁impact s ▁on ▁income ▁inequality ▁glob ally . ▁ ▁Econom ist ▁Bran ko ▁Milan ov ic ▁analyz ed ▁global ▁income ▁inequality , ▁comparing ▁ 1 9 8 8 ▁and ▁ 2 0 0 8 . ▁His ▁analysis ▁indicated ▁that ▁the ▁global ▁top ▁ 1 % ▁and