Constructing a Data Set on Labour Composition Change
No 11-04, Economics Program Working Papers from The Conference Board, Economics Program
In this paper the construction of a data set on the change in labour composition is described, thereby creating an insight into this construction process and consequently providing a guideline for using the data. A labour service function as a translog function of all labour input is defined. Using data on share in compensation and hours worked by the different labour inputs we can estimate the change in labour composition. For share of compensation we use data provided by EUKLEMS and Eurostat and use these data to construct an estimate for non-EUKLEMS countries and non-EUKLEMS years. For the construction process of the share of hours worked by different labour types we relied largely on the existing data construction methodology of The Conference Board Total Economy Database 2010, however minor changes to these data set with respect to sources and the interpolation process are made. Ultimately these data are consolidated into one measure of the change in labour composition.
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