Workers in developed nations are getting a smaller slice of the economic pie, raising fears that rising inequality will stoke social and political tensions.
The Organisaton for Economic Co-operation and Development has found labour in developed nations is continuing to lose out to capital in the battle for a share of national income - and New Zealand workers have one of the lowest proportions.
The OECD study looked at 30 developed nations, and found that in 26, labour's share dropped from 66% to 62% between 1990 and 2009.
The fall is attributed to firms shifting jobs to low wage economies, ever-cheaper technology and reduced unionisation.
New Zealand workers have less than half the share of national income. Only in Mexico, Turkey and the Slovak Republic did workers get less.
Council of Trade Unions economist Bill Rosenberg says greater protection for labour is needed, along with higher taxes on capital.
But the head of a free market think tank argues investment in education is the key.
New Zealand Initiative executive director Oliver Hartwich says New Zealand must have a a much better educated workforce. "It's the only way and the only chance we still have to justify high wage levels."
