Ricerc@Sapienza

This paper proposes an extension of Periodic AutoRegressive (PAR) modelling for time series with evolving features. The
large scale of modern datasets, in fact, implies that the time span may subtend several evolving patterns of the underlying
series, affecting also seasonality. The proposed model allows several regimes in time and a possibly different PAR process
with a trend term in each regime. The means, autocorrelations and residual variances may change both with the regime and

This paper looks at structural change as one additional source of decline in the wage share. First, we provide a decomposition of changes in aggregate wage shares into changes due to variations in output composition and in sectoral wage shares for nine OECD countries between 1977 and 2010. We show that the rise in the service sector is a relevant factor in explaining the fall of the wage share, at least for some countries. Next, we develop a two-sector Kaleckian growth model consisting of the service and manufacturing sectors.