Measuring Labor Input. Dale Jorgenson, Mun Ho, Jon Samuels Harvard University World KLEMS Conference, Harvard University August 19, 2010. Topics Measurement Issues and Methodology Data and Implementation Results Contribution of labor input to productivity revival
Measuring Labor Input
Dale Jorgenson, Mun Ho, Jon Samuels
World KLEMS Conference, Harvard University
August 19, 2010
Information Technology and the American Growth Resurgence
Jorgenson, Ho and Stiroh (2005); Chapter 6
New Data on U.S. Productivity Growth by Industry
Jorgenson, Ho and Samuels (2010)
Methodology for a tractable measure of labor input
Classification of demographic groups for each industry
2x2x7x6 = 168
scae: sex, class, age, education
j: industry j or aggregate economy
Index Ljt, cont. Constant Quality Index
Assume labor input is proportional to hours worked:
Qscaeis the quality of hours of group scae, fixed for all t.
Thus input index becomes:
Compared to simple hours:
Price of industry labor input is simply value/Lj
after choosing a normalization like:
Quality of industry labor input is labor input index divided by hours worked:
Contribution of age to labor quality
How much of the quality change is due to changes
..in educational attainment?
..in the aging of the labor force?
Partial indices of labor input.
E.g. first-order index by age
Need number of workers, hours and compensation to fill matrices of dimension (2sex, 2 class, 7age, 6educ, 70indus).
Total of 11760 cells.
Household survey data
(hours/week, weeks/year, wages/year, demographics, industry)
Census of Population.
- every 10 years
- 1% percent sample (1 million workers)
Current Population Survey, Annual Supplement (ASEC)
- every year, 1964+
- about 100,000 households
Establishment survey data
Bureau of Economic Analysis tabulations of total employment,
total compensation, wages for 72 industries;
annual hours for 18 industries
-Begin with Census microdata (1% sample, ~1 mil. workers) to populate EMP, HOURS, COMP matrices for benchmark years
-From CPS annual microdata, construct marginal matrices: EMP, HOURS, COMP matrices of lower dimension (e.g. indus x edu, sex x age x edu, …)
-Interpolate between benchmark years using these annual marginal matrices
-Scale to industry totals in the National Accounts
December 23, 2000 issue