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Comparability of Labour Input Measures for Productivity Analysis

Comparability of Labour Input Measures for Productivity Analysis. Olivier Brunet & Eun-Pyo Hong Statistics Directorate OECD 5 November 2009. Overview. General presentation of the project 2009 survey Source of indicators Adjustments to indicators Country changes between the two surveys

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Comparability of Labour Input Measures for Productivity Analysis

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  1. Comparability of Labour InputMeasures for Productivity Analysis Olivier Brunet & Eun-Pyo Hong Statistics Directorate OECD 5 November 2009

  2. Overview • General presentation of the project • 2009 survey • Source of indicators • Adjustments to indicators • Country changes between the two surveys • Future release of indicators • Labour productivity • Conclusions

  3. General presentation of the Project 1. Recommendations from the 2004 WPNA • Use NA sources as the denominator of labour productivity • Report hours worked for employees and self –employed • Countries unable to transmit data should explain reasons why they are unable to do so • Countries should transmit metadata quantifying the bridge table between original and NA data 2. First survey in 2004 3. Second survey in 2009

  4. 2009 Survey • Conducted by the OECD and Eurostat • 41 countries surveyed • Eurostat: 27 EU countries + ISL, CHE, NOR • OECD: AUS, CAN, JPN, KOR, MEX, NZ, TUR, USA and CHL, ISR, RUS • Employment & hours worked • Sources • Adjustments • Bridge table

  5. Source of indicators • Labour Force Survey (LFS) • Population Census (PC) • Business Survey (BS) • Administrative Source (AS)

  6. Sources for employees: results • Employment • LFS: Main (19 countries); Other (9); not use (6) • PC: Main (3); Other (3) • 2 countries use LFS as the only source • LFS as Main and BS/AS as Other (14): • for economic territory adjustment (8) • for compilation of industry-level data (6) • LFS as Main source but Other source when more reliable (4) • Countries mainly focused on demand-based sources (9) • Countries relying only on demand-based sources (6)

  7. Sources for employees: results • Hours worked • 19 countries use LFS as Main source • 4 countries use LFS as Other source • 2 countries use BS as Main • 1 country uses PC and BS as Main sources • 1 country uses AS as Main source • 7 countries do not use LFS as a source • Contractual or paid hours + absences and overtime • Normal weekly hours • Potential working days

  8. Sources for self-employed: results • Employment (34 countries) • 23 countries using LFS as Main source and 5 as Other source • 10 countries using only LFS • 5 countries not using LFS • 1 country does not compile any data • Hours worked (30 countries) • 3 countries do not compile data but compile data for employees • 5 countries do not compile data • 23 countries using LFS as Main source • 1 country using LFS as Other – PC & BS Main sources • 3 countries not using LFS at all

  9. Adjustments for employment • Annual/quarterly averages • BEL (-0.1%), FRA (0.2%), IRL (0.2%), ITA (-0.8%), JPN (-1.4%) • Persons vs Jobs • Positive and non-negligible -> JPN (+3.8%), NZ (+4.2%) • Economic territory • All countries but 5 make this adjustment • LUX (+52.2%), SVK (-8.6%), CHE (+6.7%), ITA (3.5%) • Non-observed economy • 14 countries RUS (+34.2%), ITA (4.8%), GER (4.7%), HUN (3.6%) • Other adjustments • Significant impact: SVN (15.1%), USA (2.5%)

  10. Adjustments for hours worked • Holidays and annual leave • Sickness leave • Strikes & temporary lay-offs • Paid but unreported overtime • Unpaid overtime • Over/under estimation of self-employed • Non-observed economy • Other adjustments

  11. Adjustments for hours worked: results • Positive impact for 12 countries, negative for 9, none for 5 • Substantial effects: • for countries not using LFS - RUS (41.1%), SVK (-18.8%) • for countries using LFS as Other source - FRA (-17.2%), ITA (11.4%) • ISR (11.3%) due to numerous foreign workers & non-residents • 12 countries apply an adjustment on the non-observed economy • 18 countries apply other kinds of adjustments

  12. Country changes between the two surveys • Employment • LFS is now the main source (3) • New sources (3) • Replacement of sources (1) • Data published in terms of persons (3) • New adjustments (4) • Quarterly estimates (1) • Other adjustments (2) • Hours worked • LFS is now the main source (3) • New methodology (1) • New adjustments (1) • New question in the BS questionnaire (1)

  13. Future release of indicators • Employment • Release of data: TUR (2009) • Hours worked • Portugal plans to release quarterly estimates at the beginning of 2010 • Release of data: TUR (2009), UK (March 2010), SVN (2009) • Belgium plans to release self-employed data in 2010

  14. Labour productivity

  15. Labour productivity

  16. Labour productivity

  17. Conclusions • Real need for harmonised estimates • Provide up-to-date methodology • Hours worked by industry • QALI

  18. Thank youfor your attention

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