The composition of labour input: Sensitivity testing and results for productivity analysis

Ashley Ward and Maria Belen Zinni

No 2024/06, OECD Statistics Working Papers from OECD Publishing

Abstract: Composition Adjusted-Labour Input (CALI) measures account for workers’ differences in skills and productive capacity. This study reviews the most relevant literature to have produced CALI estimates to date and presents a generic approach to produce CALI measures for 21 countries. It finds that education and age (proxy for work experience) are two key workers’ characteristics to be included in CALI measures, with additional workers characteristics having a more limited impact. Replacing a traditional measure of labour input, such as hours worked, with a measure of CALI in the growth accounts leads to a significant downward revision in multifactor productivity (MFP) growth in countries that experience large changes in the composition of labour.

Keywords: growth accounts; hours worked; labour input; multifactor productivity (MFP); productivity (search for similar items in EconPapers)
JEL-codes: E1 E24 J21 (search for similar items in EconPapers)
Date: 2024-08-06
New Economics Papers: this item is included in nep-eff, nep-inv and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:oec:stdaaa:2024/06-en

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