Transcript Using National Accounts Data for Productivity Analysis

Using National Accounts Data for
Productivity Analysis
STD/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:
1. 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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GDP per
hour
worked,
USA=100
(8)
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Australia
Canada
France
Germany
Italy
Japan
Sweden
United Kingdom
United States
7
Euro-zone
75
76
103
91
78
70
86
86
100
87
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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?
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