Using National Accounts Data for Productivity Analysis STD/NAFS(2005)25

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Using National Accounts Data for Productivity
AnalysisSTD/NAFS(2005)25

• François Lequiller
• OECD

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Objectives of the paper

• Is a continuation of 2004 paper promoting the use
  of national accounts data on labour input for
  productivity analysis
• Progress on the recommendations made in 2004
• Compile and transmit hours worked  in national
  accounts
• 2. Compile and transmit  business sector 
  data
• 3. Compile and transmit data on  persons 
• 4. Explain differences between NA employement
  and labour force statistics

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Productivity comparisons in the OECD

• To compare productivity growth is easier than to
  compare productivity levels (PPPs)
• However, international users want to compare
  levels
• Example EU countries have set benchmark to the
  US in terms of levels (Lisbon objectives)
• Canada and US productivities are compared in
  levels
• OECD disseminates data on productivity levels

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(No Transcript)
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I. Total hours in national accounts

• The numerator of labour productivity is GDP
• It is natural that the denominator, the measure
  of labour input, is consistent with numerator
• National accounts data should be used to compile
  the denominator of labour productivity
• Table 2 (page 3) show the substantial progress
  made during 2005
• Austria, Czech R, France, Italy, Netherland,
  Slovak R, Spain, Switzerland, USA are now
  transmitting total hours worked.

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Recommendation 1

• Australia, Belgium, Iceland, Ireland, Japan,
  Luxembourg, Mexico, New Zealand, Poland,
  Portugal, Turkey, UK
• should compile (and transmit to OECD) total
  hours worked (employees and self-employed) in the
  framework of national accounts.

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II. Business sector

• Pending better measurement of non market sector,
  economists remain interested by business sector
  productivity
• OECD had started last year a special
  questionnaire on the business sector.
• See Table 3, page 4 Thirteen OECD countries have
  transmitted data and we are grateful for this
  transmission
• Austria, Belgium, Canada, Czech R, Finland,
  Japan, Netherlands, Norway, Poland, Portugal,
  Slovak R, Sweden, Switzerland, USA

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Recommendation 2

• Australia, France, Germany, Greece, Hungary,
  Iceland, Ireland, Italy, Korea, Luxembourg,
  Mexico, New Zealand, Slovak Republic, Spain,
  Turkey, UK
• should envisage compiling volume value
  added, employment and GFCF of the business
  sector.
• A new round of questionnaire on the business
  sector will be circulated in the beginning of
  2006.

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III. Persons

• Most OECD countries (24/30) report persons (and
  not jobs)
• SNA should be clarified to avoid excluding the
  concept of  persons . ESA, which recognises the
  concept of persons, will be used as an input for
  this clarification.
• This clarification should (hopefully) be adopted
  by the 2006 AEG.
• Recommendation 3 The five OECD countries
  (Austria, Canada, Greece, Japan, UK) which do not
  yet report persons should report data in terms of
  persons as well as in terms of jobs (USA has done
  it in 2005).

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Comparison with labour force statistics

• The increasing use of national accounts
  employment data will draw attention to the
  differences between national accounts employment
  data and official labour statistics
• National accounts will be fully convincing is
  they can explain clearly the adjustments included
  to the original data
• A questionnaire was circulated last year by the
  OECD comprising textual and quantitative
  information on these differences
• It was agreed that OECD covered non EU countries,
  and Eurostat covered EU countries. But Eurostat
  was delayed.

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First results

• The first results are therefore limited to 7
  countries. Australia, Canada, France, Japan,
  Mexico, New Zealand, USA.
• We thank these countries for transmitting this
  useful information (see pages by country and
  quantified tables by country in end of paper).
• Recommendation 4 European countries will receive
  the questionnaire during 2005-2006. They are
  requested to respond as best as possible.

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Elements of differences

• See Table 6, page 7
• Adjustments on the coverage of population
  (territorial, military) are quite limited (around
  1).
• Only one country reported an adjustment for
  underground economy.
• More information when more responses from
  countries.
• This information will be posted in the metadata
  of OECD databases.

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Conclusion

• We are grateful for your comments on
• Total hours in the national accounts?
• Business sector data?
• Persons?
• Differences between NA and labour force
  statistics?