> People don't capture the full value of their labor (which makes a sort of sense, given imperfect information and how risk is allocated), I think it is primar

> People don't capture the full value of their labor (which makes a sort of sense, given imperfect information and how risk is allocated), I think it is primarily due to de-risking. You agree with your employer that the biggest percentage of your income will be fixed and independent of how much value the company produced (be it profits or share appreciation or whatever). This makes sense because your life has high fixed costs, and your cash-flow cannot allow for years when you make zero (or even a negative amount), even if in the next one you would make 5 times your current salary. > which leads to people not being incentivized to increase the value of their labor. Don't think this is necessarily true. I would love to walk into an apple orchard now and spend an hour picking if I could keep 25% of the apples.