Gross vs net labor share

General DSGE Modeling
1

Dear members,

I would like to know if one should rather take the net labor share or the gross labor share in my model. The first one gives me 0.74 and the second one 0.61. My first guess is to use a gross labor share because my output is a gross output.

Thank you,

Best

2

That is impossible to answer in general, but as your model and data objects must be consistent, it seems you have answered your own question correctly.

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