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Quality‐adjusted labour input: new estimates for 1993 to 2008

Alex Turvey, Peter Goodridge and Mark Franklin
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Alex Turvey: HM Revenue & Customs (formerly Office for National Statistics)
Mark Franklin: Office for National Statistics

Economic & Labour Market Review, 2010, vol. 4, issue 10, 113-131

Abstract: SummaryQuality‐adjusted labour input (QALI) is a measure of labour input which takes account of the quality of the workforce as well as volume of hours worked. It provides a more complete picture of the input of labour to the production process than traditional measures, which focus only on the quantity of labour input, and is therefore more suitable for assessing productivity performance. Along with the volume index of capital services, QALI is a key input to multi‐factor productivity and growth accounting analyses (see Long and Franklin 2010 for the latest estimates).This article presents new estimates of QALI for 1993 to 2008, which are the result of significant development work since the previous release (Goodridge 2009). This includes a change to the compositional categories used in the quality‐adjustment process, an expansion in industrial detail, and the presentation of a longer time series. This work also fed into the growth accounting dataset used in the NESTA Innovation Index, a joint ONS/Imperial College project to identify the contribution of innovation to economic growth (NESTA 2009).

Date: 2010
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