employees in the above defined approach. Represented in the above described way, the income elasticity coefficient has the meaning of actual weight in income which, together with the relevant capital elasticity coefficient, normally adds up to 1. The shortcoming of this approach however is that the relative share of labour is unrealistically underestimated since the whole net mixed income is wrongly taken for capital income.
Under the second approach, total net mixed income is counted to income from labour. Then, the elasticity coefficient is calculated as a relative share in the income of the sum total of compensation of employees and net mixed income. Net mixed income itself is obtained as 1/3 of the amount of the net operating surplus and net mixed income.3 Under this approach, the share of labour incomes is somewhat overvalued since net mixed income is not limited to real labour incomes. The two ways of measuring labour’s relative share in income produce two estimates for labour contribution, which by way of their formation are undervalued and overvalued. Therefore, they should not be absolutized, but should rather be approached as setting a certain range of factoral influence.
The above two approaches have a significant weakness entailed from the fact that the coefficients calculated by them are actually not GDP elasticities. As the basis taken for their calculation is the sum of production factor incomes, their calculation in relation to GDP, while also calculating their elasticity to capital, leads to violating the condition of constant returns to scale. These deficiencies are the reason to use yet another modification of income whereby it coincides with GDP in this paper.