On the Tang and Wang Decomposition of Labour Productivity Growth into Sectoral Effects

Walter Erwin Diewert ()

UBC Departmental Archives from UBC Department of Economics

Abstract: Tang and Wang provided a decomposition of economy wide labour productivity into sectoral contribution effects. The present note reworks their methodology to provide a more transparent and simple decomposition. This new decomposition is then related to another decomposition due to Gini and analyzed by Balk. Overall growth in labour productivity is due to three factors: (i) growth in the labour productivity of individual sectors; (ii) changes in real output prices of the sectors and (iii) changes in the allocation of labour across sectors.

Keywords: Index numbers; labour productivity; decompositions of aggregate labour productivity into sectoral effects. (search for similar items in EconPapers)
JEL-codes: C43 D24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff
Date: 2008-04-16, Revised 2008-04-16

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Persistent link: http://EconPapers.repec.org/RePEc:ubc:bricol:erwin_diewert-2008-6

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