Contributions of U.S. Non-Manufacturing Industry Groups to Multifactor Productivity (1987-2005)
This discussion paper by Michael J. Harper and colleagues examines the multifactor productivity (MFP) contributions of U.S. non-manufacturing industry groups from 1987 to 2005. It highlights key trends, including instances of negative productivity growth across various sectors and the challenges in measuring service sector productivity. The paper also discusses the collaboration between the Bureau of Economic Analysis and the Bureau of Labor Statistics to enhance data reliability, aiming to provide a comprehensive view of productivity in the service sector and its implications for the economy.
Contributions of U.S. Non-Manufacturing Industry Groups to Multifactor Productivity (1987-2005)
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Presentation Transcript
Discussion Paper Multifactor Productivity Contributions of U.S. Non-Manufacturing Industry Groups: 1987‑2005 by Michael J. Harper, Bhavani Khandrika, Randal Kinoshita and Steven Rosenthal U.S. Bureau of Labor Statistics May 1, 2008
1990s Attention to Weak Service Sector Data • Griliches AEA address • Boskin Commission • Corrado-Slifman [1999] • New data have become available in recent years
BEA – BLS Collaboration on “Production Accounts” • Input part of national accounts • FHPY: Fully integrated set of detailed data from which many types of industry and aggregate measures emerge • Current agenda includes expanding aggregate measures, comparing industry measures and filling in industry accounts
Add the Time Element : • Distinguish “p”s and “q”s
Aggregates: Real Accounting Definition: AT = ST - NIT = Aggregate MFP Results: AT =Sj=1n(VYj/VST)Aj (Domar [1961]) Sj=1n (VYj/VST) = 1 + +Sj=1mSj=1nSj=1nVNi,j,k/VST
Negative MFP Trends • Counts of industries with (-) MFP trends: • 1987-2005 16 of 42 • 2000-2005 13 of 42 • 1977-1997 13 of 32 --- GH [2002] • Limited comparability – there is now more detail in services
Negative Productivity Trends • Effects on private business trend of raising (-) to zero: • 1987-2000 +0.27 • 2000-2005 +0.19 • 1977-1997 +0.3 --- GH [2002] • 1977-1992 +0.4 --- GH [1999] • 1977-1997 +0.4 --- Corrado -Slifman[1999] (labor productivity)
Negative MFP Trends • Counts of industries with (-) trends where BLS DIPS has coverage: • 1987-2005 2 of 11 • 2000-2005 2 of 11 • Counts of industries with (-) trends where BLS DIPS lacks coverage: • 1987-2005 14 of 31 • 2000-2005 11 of 31
Measuring Non-Manufacturing Productivity Are we there yet?We may be closer
